Pension funds administrator CPF Financial Services will this month start biometric registration of civil servants as it moves to take charge of over Sh30 billion every year in pension contributions.
The fund's group managing director Hosea Kili told the Business Daily in an interview that the Public Procurement and Administrative Review Board has since complied with a court order to honour its contract as awarded last year.
CPF Financial Services which has for years been administering pension funds for employees of county governments won a tender to manage the Public Service Superannuation Scheme (PSSS).
But awarding of the tender was delayed due to a court order.
PSSS is the first contributory pension scheme for civil servants and it will have at least 350,000 members at the start, contributing about Sh31 billion each year.
The Treasury rolled out the scheme in January 2021 but there were tendering delays in tapping a firm to administer the funds.
“That matter is in the past now. The board (Public Procurement and Administrative Review Board) complied with the court order and awarded us the tender. There have not been fresh hurdles to the same,” Mr Kili told Business Daily on Wednesday.
“We are now starting the biometric registration of the civil servants next month, effectively meaning that we will start administering the scheme.”
CPF was the only bidder, which managed to get to the financial proposals opening stage last year after attaining a technical score of 95.2 percent.
But the board of trustees delayed awarding of the tender prompting CPF Financial Services to go to the Public Procurement and Administrative Review Board and later the Court of Appeal in a bid to have the tender awarded.
Public servants are currently contributing 7.5 percent of their monthly pay to the PSSS with the government matching the contributions at a rate of 15 percent of every worker’s monthly salary.