| Work Detail |
Retirement schemes in the public sector are fighting an attempt by the Government to declare them State entities. Should the Government have its way, it would mean the schemes would be tightly controlled by the Public Procurement and Asset Disposal (PPAD) Act. This would in turn mean that any form of procurement or investment decision they make would be subjected to government procurement regulations.
According to Association of Retirement Benefits Schemes (ARBS) Chairman Simon Nyakundi (pictured), the umbrella body for all pension schemes in the country, the proposal is a big setback in how the retirement schemes operate. He said this would see them lose out on investment opportunities to third-party entities since the PPAD Act gives complex guidelines to be followed when a State entity wants to make an investment. Private entities “If a scheme is following the PPAD Act, it will take long before it is allowed to take up an investment,” said Mr Nyakundi in an interview. Avoid becoming a victim of Fake News. Subscribe to the Standard Group SMS service by texting NEWS to 22840. He also explained that the Retirement Benefits Authority (RBA), the pension industry regulator, also has a code of good market practices that all schemes are expected to adhere to. The code gives clear guidelines on how pension schemes should carry out their procurement as private entities. Mr Nyakudi said the schemes went to court in 2015, demanding that Treasury drop its attempt to tie them to the Act. The High Court, however, ruled in Treasury’s favour. They plan to appeal in October this year. At the same time, the schemes are also battling the Kenya Revenue Authority (KRA) over demands made in this year’s amendments to the Income Tax Act.
|
