Octagon Africa has obtained official approval from the Retirement Benefits Authority (RBA) to oversee Tier II contributions.
The approval will see employers who choose not to participate in the National Social Security Fund (NSSF), opt for the Octagon Umbrella Retirement Benefits Scheme.
This regulatory endorsement aligns with the NSSF Act of 2013, which was recently validated and deemed constitutional by the Kenyan Court of Appeal in February 2023.
Section 21 of the Act provides an opt-out alternative for occupational retirement benefits schemes, umbrella retirement benefits schemes, and individual retirement benefits schemes that have been duly approved and registered by the RBA for receiving Tier II Contributions.
Fred Waswa, the CEO of Octagon Africa Group, emphasized the prudence of placing Tier II contributions within a privately managed pension scheme like the Octagon Umbrella Retirement Benefits Scheme. Such a scheme grants employers influence over its governance through the Committees established under the RBA Regulations.
“We are thrilled to receive regulatory approval from the RBA to administer Tier II pension contributions. Our scheme is impeccably managed and administered, ensuring superior returns for our clients. Furthermore, our processes are highly automated,” stated Mr. Waswa.
This significant approval arrives as the Kenyan government endeavors to enhance and diversify the nation’s pension industry, providing Kenyan workers with more retirement savings options.
The pension contribution is fixed at 12% of the pensionable wages, comprising equal portions of 6% from both the employee and the employer, subject to a total upper limit of Kshs 2,160 for employees earning above Kshs 18,000 during the initial year of implementation.
Having been delivering pension fund administration and consultancy services since 2007, Octagon Africa boasts a proven track record and currently manages over Kshs. 100 billion in assets for more than 200,000 customers. The company specializes in Employee Benefits Administration and Consultancy services.
“Our expertise in pension administration, coupled with our innovative solutions, enables us to offer our clients a unique value proposition in the Tier II pension market,” commented Florence Muchiri, Octagon Africa’s Commercial Director.
Octagon Africa remains committed to ensuring that its clients receive the finest financial advice and investment solutions at favorable and competitive rates, and this approval marks a step in the right direction.
