The Retirement Benefits Authority (RBA) is reviewing its policies to improve efficiency and increase pensions uptake in Kenya.
Among the proposed policy reviews according to the authority’s Chief Executive Director Nzomo Mutuku is a provision allowing pension holders the use of their pension policies to secure a mortgage loan.
The new regulations will enable pensioned Kenyans to use a portion of their accrued pension benefits as security against a mortgage.
As part of the reviews, RBA is planning an awareness campaign to increase the uptake of pension services. The number of Kenyans with pension policies is currently less than 20 percent, leaving out about 80 percent of the population due to lack of awareness and innovation.
Most Kenyans employed in the informal sector have been locked out of pension services for long due to the perceived complexity, cost concerns and limited product offerings. RBA aims to change this by reviewing pension policies and regulations to increase accessibility and simplify the claims process.
There has been an increase in initiatives from both government and private sector to increase mortgage accessibility across the country as part of the efforts to increase home ownership.
The Kenya Mortgage Refinancing Company recently announced that beginning April, banks will be able to offer home loans to Kenyans earning less than Ksh. 150,000.