| dc.description.abstract | This survey provides a critical analysis of the effect of the Retirement Benefits
Act (No.3 of 1997) on the management of insured retirement benefits schemes
in Kenya. The rationale of the study is to address the various issues raised by the
insurance companies regarding the effect of the Act of 1997 and subsequent
regulations on the management of insured retirement benefits schemes. The
population consists of 19 insurance companies underwriting retirement benefits
schemes and 3 brokerage firms. The primary data from structured questionnaires
was analyzed using descriptive statistics. The study shows that 64.3% of the
insurance companies managing the retirement benefits are locally owned. Within
the different types of retirement benefits arrangements, 57% of the companies
were operating the defined benefits schemes as opposed to defined contribution,
and 71% of the companies managed contributory as opposed to noncontributory
schemes. The results and responses given by the respondents
agreed that the enactment of the RBA Act brought about major positive changes
to the industry, The percentage for the responses on specific changes were as
follows: Fees 71.4%, Services 71.4% Reporting of accounts 92.90/0, Returns to
RBA 92.9%, Fund management and custodial services 85.7%. One of the most
negative aspects of the Act was the increase in costs of setting up and operating
schemes. The stakeholders in the industry, namely, the Retirement Benefits
Authority, the Commissioner of Insurance, and the Capital Markets Authority
should look for ways of bringing these costs down. | en |
