Market News

New pension product aims at Muslim staff in counties

Hosea Kili, CPF Financial Services CEO. PHOTO | DIANA NGILA
Hosea Kili, CPF Financial Services CEO. PHOTO | DIANA NGILA 

A pension scheme representing county workers has developed a Shariah-compliant product targeting Muslims who have felt left out by conventional products.

CPF Financial Services, a retirement schemes administrator, has developed Salih Retirement Fund which will be offered through its counties pension scheme.

CPF group managing director Hosea Kili on Thursday said the product is under review by Shariah experts ahead of the rollout.

Mr Kili said the product is also entrenched in the County Pension Scheme Bill 2017, currently in the National Assembly.

“We believe this will be a huge success in satisfying the needs of all our customers regardless of their faith,” said Mr Kili.

CPF has about 67,000 members across the 47 counties, with nearly 20,100 Muslims. It has an asset base of Sh47 billion.

The product will be administered under the supervision and guidance of Shariah scholars to ensure that it conforms to Islam principles which prohibit interest and investments ventures such as alcohol, tobacco and gambling.

Jaafar Abdulkadir, managing director of Nairobi-based Islamic finance consultancy Aqeel Consulting Ltd, said development of the product shows the potential that exists in the market.

“What we are seeing is that there is growing realisation that people want things to be done in a transparent and ethical way. This is a response to these demands,” said Mr Abdulkadir.