MPs Scrap Age Limit To Allow Workers To Access Pension At Any Time

For years, to access pension in Kenya, one had to hit 50 years of age, formerly known as the “retirement” age, but not anymore.

Kenyan MPs have now annulled a legal amendment that had locked the savings of workers until they reach the age of 50 years.

With the annulment of the amendment, Kenyan workers who will either lose or change jobs will be allowed to access their pension without the hinderance of age.

The legislators faulted the National Treasury, as well as the Retirement Benefits Authority (RBA) for “not properly seeking the views of Kenyans before adopting the legal notice” that effectively locked more than 385 billion shillings in the pension pool.

The move by MPs gives Kenyan workers a breathing space of having to access their pension without the requirement of age.

The Retirement Benefits Authority (RBA) has already said that pension schemes in Kenya will soon run into huge losses if retrenched Kenyans will be allowed to access their pension before they reach 50 years.

“It is a sad moment for the retirement benefits industry,” Nzomo Mutuku, the Chief Executive of RBA said.

In the past three months, more than 5,000 Kenyans have lost their jobs as more companies continue to cut down on their workforce with others closing down completely.

The latest company to fire employees was Mumias Sugar Company which terminated 681 active contracts for its workers. This came after 2,500 casual workers had been fired during the year.

More than 1,100 workes of Finlays, a flower company will have no jobs on the 26th of December 2019 as the company has already given them notice of being fired on the 25th of December 2019.