SanlamAllianz Kenya has announced a strategic move to transform the country’s retirement landscape, positioning its Income Drawdown (IDD) fund as the natural evolution of retirement income. Backed by a market-leading 283% capital adequacy ratio, the insurer is championing a short-term, flexible approach to capital growth for Kenyan retirees.
SanlamAllianz’s IDD fund builds on the company’s heritage as the first provider of annuities to the Kenyan market. It is a modern, flexible alternative to traditional annuities for retirees seeking longevity and control. While traditional retirement plans have rested heavily on accumulation, saving while working, SanlamAllianz is now confronting the decumulation phase with the launch of the IDD fund while continuing to manage an average monthly pension annuity payroll of KSh 150 million.
“Retirement doesn’t mean lacking a steady flow of income,” said Jacqueline Karasha, CEO: SanlamAllianz Life Insurance. “With the SanlamAllianz Income Drawdown Fund, your savings continue to grow even as you receive regular income, monthly, quarterly, or annually. It is flexible, reliable, and designed to make your retirement years truly rewarding.”
The IDD fund operates like a pension bank account that remains invested. It allows retirees to withdraw regular instalments while the remaining balance continues to grow through market investments.
The fund empowers retirees in the following ways:
- Market-Leading Returns: In 2024, the fund declared a net return of 15%. Investments are held within the SanlamAllianz Deposit Administration Fund, ensuring competitive growth.
- Capital Protection: The fund offers a 5% minimum guaranteed return, ensuring the investment value never drops below the principal, providing peace of mind in volatile markets.
- Tailored Payouts: Members can choose payment frequencies (monthly, quarterly, or annually) and revise terms each year, up to a maximum of 12% of the fund balance per annum, per RBA guidelines.
- Tax Efficiency: Under the Tax Laws Amendment Act 2024, monthly payouts and benefits from the IDD fund are exempt from income tax, maximising the cash available to retirees.
Beyond high-tier investment products, SanlamAllianz is addressing the 80% of Kenyans in the informal sector. Through Akiba Plus, a mobile-first digital platform, the insurer has simplified the retirement journey. The platform allows users to self-onboard, consolidate old pensions, and track growth in real-time, ensuring professional pension management is accessible to every Kenyan.
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