Getting pension fund governance right

Pensions administrator Laptrust has set aside Sh32.4 billion as potential losses from unremitted pension. PHOTO | SHUTTERSTOCK

The value of pension fund assets has grown tremendously over the last two decades currently hitting Sh1.54 trillion from Sh44 billion in 2000. This growth supposes that the typical scheme has shifted from placing all its investments in government securities to active investment management.

Besides, the volume and complexity of compliance and regulatory framework has increased and significantly impacted operational and cost efficiencies, especially for smaller schemes.

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Note: The results are not exact but very close to the actual.