Enwealth Financial Services has signed up 50 employers in five months after being approved to manage tier-II National Social Security Fund (NSSF).
Enwealth managing director Simon Wafubwa on Tuesday said the pension administrator is eyeing to hit 100 employers by the end of the year.
The firm in April announced that it had received approval from the Retirement Benefits Authority (RBA) to manage the contributions from employers opting out of the State pension fund.
Enwealth manages both individual and corporate pensions, insurance services, training and home ownership where active pension scheme members buy residential houses using part of their retirement benefits.
“We have already on-boarded 50 employers in the five months since we received the (RBA) approval. We want to hit a milestone of 100 employers by the end of the year,” Mr Wafubwa said on Tuesday.
Enwealth holds in excess of Sh85 billion in assets under management, with a regional footprint in Kenya, Uganda and Mauritius. It has more than 200 corporate and 80,00 retail clients.
The Court of Appeal in February allowed the implementation of the NSSF Act, 2013 leading to an increase in monthly contributions of up to 10 times.
It was the first review of the rate since 2001 when it was increased to Sh200 from Sh160.
The NSSF had 348,291 registered members as of June 2021, with an investment portfolio of Sh284.9 billion.
The NSSF Act, 2013 increased salaried employees’ monthly deductions from Sh200 to Sh600 for the lowest earner and from Sh320 to Sh1,080 for top earners. The upper limits on contributions are set to rise every year.
According to the Act, tier-I contributions from both the employee and the employer are capped at Sh720 and go to NSSF.
The rest of the contributions above Sh720 up to a maximum of Sh1,440 categorised as Tier II have the option of being remitted to private asset managers.
