The government needs to create balanced policies such that only a portion of retirement benefits can go into the purchase of residential homes, pension firms have said. Currently, the law only allows the use of up to 60 per cent of accumulated pension savings as mortgage collateral. “This amendment is proposed to allow for the use of a percentage of the funds for purchase of a residential house,” Duale said. He added that many Kenyans desire to own a home and the unlocking of pension savings will boost many to achieve this desire. Data by the Kenya National Bureau of Statistics shows total assets of pension funds rose to Sh1.32 trillion as at December 2019 from Sh1.17 trillion as at December 2018.

Source: The Star May 04, 2020 00:56 UTC