Budget Memorandum 2023/2024: RBA Calls for Policy Proposals

The Retirement Benefits Authority (RBA) is inviting all stakeholders to submit policy proposals by August 17, 2023 towards the 2023/2024 Budget Memorandum.

The Authority will consider all submissions received before finalizing the memorandum to be submitted to the National Treasury and Planning.

Budget Memorandum: Proposals required

These proposals are aimed at changing the legislative framework that governs the pension sector, impacting crucial aspects such as taxation, investments, the interim administration of schemes amongst others.

In order to accommodate thorough consultations and comprehensive evaluations, stakeholders are advised to submit their proposals to RBA by August 17, 2023.

The policy proposals forwarded to the Retirement Benefits Authority will undergo thorough scrutiny thus stakeholders should support their submissions with clear reasoning to justify the suggested changes.

Clearly explaining the context and reasoning behind each proposal will aid in evaluating its potential impact on the pension sector.

Additionally, proposers are requested to indicate the specific sections in the current law that their proposal will affect, making it easier for policymakers to assess and integrate the suggestions into the legislative framework.

Memorandum: submission of proposals

Interested parties can send their proposals via email to research@rba.go.ke. Electronic submissions are encouraged as they are faster and more accessible.

For those who prefer to submit hard copies submissions can be addressed to:

The Chief Executive Officer,

Retirement Benefits Authority

P.O. Box 57733 – 00200 Nairobi, Kenya

By inviting inputs from various stakeholders, the Authority aims to ensure a collaborative and inclusive approach in shaping the future of the retirement benefits industry.

All stakeholders are encouraged to actively participate in this important process and contribute to the continued development of a robust pension system.

Also read: RBA CEO Charles Machira on Pension Funds Investment

According to the investment guidelines popularly referred to as Table G, pension funds are allowed to invest up to  30 per cent of scheme funds in all listed Real Estate Investments Trusts (REITS) incorporated in Kenya and approved by the Capital Markets Authority, 10 per cent in Private Equity & Venture Capital, 10 per cent in debt instruments for the financing of 10 per cent infrastructure or affordable housing projects approved under the Public Private Partnerships Act, 2013 or as may be prescribed by the Cabinet Secretary responsible for matters relating to housing.

The pension funds can also invest up to 5 per cent of scheme funds/assests in all exchange traded derivatives contracts approved by the Capital Markets Authority  and up to 10 per cent of scheme funds in any other assets.