Economy

Trustees accused of running down pension schemes

olubayi

Zamara Group Executive Director James Olubayi. FILE PHOTO | NMG

Rogue trustees risk collapsing the retirement benefits industry through mismanagement and graft, pensions insiders have warned amid calls for the vice to be tackled head-on.

Education Cabinet Secretary, Professor George Magoha, who is a trustee, said the industry must weed out risks to the savings for sunset years.

Speaking Thursday during the seventh Zamara annual retirement conference at Pride Inn Paradise Beach Resort at Shanzu, Mombasa, the CS said the industry should not be in the hands of people with “itchy fingers”.

Prof Magoha is a board trustee at the Kenya National Examination Council’s Staff Retirement Benefit Scheme.

Zamara Group Executive Director James Olubayi urged employers of domestic workers, drivers, cooks and nannies to save for their employees for their retirement. He said the funds will afford the workers the privilege of living a dignified retirement.

“I would like domestic workers, drivers, cooks and nannies to join the (pension) movement,” said Mr Olubayi.

“Too many times some have fallen short of dignified retirement lives, that is having adequate income, adequate medical cover and sufficient social support, because they started preparing for this marathon too late,” he told more than 300 delegates drawn from over 100 schemes. Mr Olubayi said there is need to confront the challenges facing the industry including governance. “The Retirement Benefits Authority is addressing this. This follows the publication of the Good Governance Guidelines in November 2018, which impresses on the trustees to standardise their processes and procedures...”, he said.