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Alexander Forbes deal boosts fund to Sh130bn

waswa

Octagon chief executive Fred Waswa. FILE PHOTO | NMG

Johannesburg-based Alexander Forbes business realignment has handed Kenya’s Octagon Africa multinational company (MNCs) pension accounts, raising the local firm’s assets under management to Sh130 billion.

Octagon chief executive Fred Waswa Tuesday said his firm had signed a strategic partnership with the listed South African firm allowing Octagon to take over all MNC pension business in Kenya, Uganda and Zambia.

“We are in discussions to expand our services to take over Alexander Forbes business in Uganda, Rwanda and Ghana. That is our next growth phase where we partner with established companies to improve our product offerings as well as enter new markets,” he said.

Last year Alexander Forbes announced a renewed business strategy that saw them abandon provision of in-country pension business for international clients in favour of provision of continent wide advice-led integrated retirement solutions and wealth management services.

Retirement Benefits Authority (RBA) chief executive Nzomo Mutuku backed such partnerships saying they give platforms for Kenyan companies to scale up operations across Africa.

“This is the best model for growing local expertise on matters pensions management and RBA looks forward to such partnerships that give Kenyans a chance to serve on a global scale,” he said Octagon—which has 200 corporate clients with 130,000 members and Sh100 billion under management—said its Kenyan clientele will benefit from new products earlier offered to Alexander Forbes clients.

The deal also sees Octagon take over clients earlier served by global health and wealth management consultancy Mercer mostly drawn from MNCs operating in Africa. Alexander Forbes chief executive Dawie de Vililers said the revenue sharing partnership gives them an avenue to return to Kenya after a three-year absence. The firm operated in Kenya for 18 years before it sold off its interests to a local firm.