Workers’ retirement benefits grow at the slowest rate due to Covid-19

RBA CEO Nzomo Mutuku [Photo: Kenya Current]

Workers’ retirement savings have grown at the slowest rate in 5 years, due to the effects of Covid-19, that affected contributions and sparked withdrawals.

The Retirement Benefits Authority (RBA) says 2020 saw many workers who lost their jobs or had their salaries slashed, tap into their savings to make ends meet.

This in turn contributed to the slowed growth in assets.

In a brief for up to last December RBA showed assets under the management expanded by 7.7 percent from 1.29 trillion in 2019 to 1.39 trillion.

The growth is down compared to 11.3 percent a year earlier.

It is the slowest since 2016 when retirement benefits grew by 3.3 percent. 

The authority’s CEO Nzomo Mutuku, said RBA had relaxed several of its terms last year, including allowing grieving firms in sectors like aviation, manufacturing and hospitality to suspend retirement contributions.

It was a difficult year. We had companies closing down, retrenched staff who were taking money from the system and some companies suspending contributions,” said Mutuku.

Leave a Comment

Your email address will not be published. Required fields are marked *