Before the dawning of the Retirement Benefits Act in Kenya, many organizations and companies in Kenya got away with conning hardworking Kenyans. Pension plans in Kenya were not regulated, and sponsors in Kenya kept poor records of scheme members’ funds. Various schemes in Kenya adopted different styles of operation, and this wrecked havoc as the beneficiaries were marginalized. The result of a deregulated saving industry was poor management of finances and poor record keeping in Kenya. Cases of Kenyans who expected to receive their pension being told there was no money became the news of the day. As can be imagined, the heartache that accompanies such betrayal cannot be put into words.
Therefore, when the Retirement Benefits Act in Kenya came into existence, it was like a reprieve for many Kenyans. The Retirement Benefit Authority in Kenya became fully functional in October 2000, and it set the standards for retirement schemes. Retirement Benefit Authority in Kenya came into existence to reform the financial sector and ensure that retirement benefits reached their rightful beneficiaries. RBA is a regulatory body in Kenya, and as such there are various schemes registered as members. These schemes follow the rules and guidelines as stipulated by the Kenya Benefit Authority. This translates into transparency and accountability when dealing with retirement funds. Sponsors can no longer lament the lack of funds as they are required to be meticulous in their record keeping ensuring funds are readily available upon retirement.
The RBA website in Kenya, http://rba.go.ke/, has an extensive list of various schemes that are regulated by the authority. It has instructions on membership. It has details on what sponsors can do to join the RBA in Kenya, and it has excellent advice on how and why Kenyans should take the matter of their retirement very seriously. There are a number of advantages Kenyans can receive from joining a registered scheme. The obvious benefit is the assurance that their money is in good hands and will serve as pension in their old age. Registered schemes under RBA in Kenya have to meet set standards in the provision of quality services. They are not allowed to use members’ funds to start their own businesses and this means that upon retirement, the members do not have to wait for long to start receiving their benefits.
Saving for retirement in Kenya is advisable to all Kenyans. However, a good number of Kenyans are wary of retirement benefits schemes. No one wants to put money in a bottomless pit. This is why it is important for Kenyans to keep informed on legally registered schemes. Why not take time to peruse through the RBA website http://rba.go.ke/ in Kenya? Or visit Retirement Benefit Authority office in Kenya on Rahimtulla Tower, 13th Floor, Upper Hill Road in Upper Hill, Nairobi. When you think about it, every Kenya has to save up for retirement. Therefore, it is only prudent that you know your hard earned money is in safe funds and that it will be readily available to you when the time comes when you save with Retirement Benefit Authority in Kenya. You are the determiner of your future, and with RBA in Kenya regulating your retirement scheme, I would say you are on the right track.