Octagon Africa, a prominent financial services provider operating in Kenya, has obtained regulatory clearance from the Retirement Benefits Authority (RBA) to oversee Tier II contributions from employers who choose to opt out of the National Social Security Fund (NSSF) by utilizing the Octagon Umbrella Retirement Benefits Scheme.
This regulatory endorsement adheres to the NSSF Act of 2013, which was duly authenticated and deemed constitutional by the Kenyan Court of Appeal in February 2023. Section 21 of the Act offers an opt-out alternative for occupational retirement benefits schemes, umbrella retirement benefits schemes, and individual retirement benefits schemes that have received approval and registration from the RBA to receive Tier II Contributions.
Fred Waswa, the CEO of Octagon Africa Group, emphasized the wisdom of employers directing their Tier II contributions to privately managed pension schemes like the Octagon Umbrella Retirement Benefits Scheme. By doing so, employers gain influence over the scheme’s governance through the Committees established in accordance with RBA Regulations.
“We are pleased to have obtained regulatory approval from the RBA to oversee Tier II pension contributions. Our scheme boasts exceptional management, administration, and the potential to generate superior returns for our clients. Moreover, our processes are highly automated,” stated Mr. Waswa.
This significant approval coincides with the Kenyan government’s efforts to deepen and broaden the nation’s pension industry, thereby offering more retirement saving options for Kenyan workers.
Under this arrangement, pension contributions amount to 12% of the pensionable wages, with both the employee and employer contributing 6% each. For employees earning above Kshs18,000 in the initial year of implementation, the total upper limit for contributions stands at Kshs 2,160.
Octagon Africa has a proven track record in delivering pension fund administration and consultancy services since 2007, presently managing assets worth over Kshs.100 billion for more than 200,000 customers. The company specializes in Employee Benefits Administration and Consultancy services.
“We are confident that our proficiency in pension administration, coupled with our innovative solutions, positions us to offer our clients a distinct value proposition in the Tier II pension market,” commented Florence Muchiri, the Commercial Director of Octagon Africa.
Octagon Africa remains dedicated to providing its clients with top-notch financial advice and investment solutions at competitive and favorable rates, and this approval signifies a positive stride in that direction.