The Retirement Benefits Authority (RBA) has issued a stern reminder to trustees, scheme administrators and other service providers of retirement benefits schemes to settle the mandatory levy before the October 31 deadline or risk stiff fines.
In a notice released on Tuesday, September 9, the regulator stressed that the Constitution requires all retirement schemes to remit the levy within four months after the close of the financial year which ended on June 30, 2025.
“Any default in payment attracts a penalty of five per cent per month on the outstanding amount,” the Authority cautioned.
To ease compliance, RBA directed that payments be made through the eCitizen platform, with schemes also required to send confirmation emails detailing the registration number, scheme name and levy paid.
The Authority warned that failure to comply not only attracts penalties but could also lower a scheme’s risk score, ultimately putting pensioners’ savings at risk.
Poorly governed schemes, RBA noted, are more likely to delay or mismanage retirement benefits.
Kenya’s pension industry has continued to grow rapidly, with assets under management hitting Ksh2.25 trillion by December 2024 a 30.7 per cent jump from Ksh1.7 trillion the previous year.
Much of the growth has been driven by higher contributions to the mandatory National Social Security Fund (NSSF).
In addition to the levy, the regulator has also directed pension schemes to submit audited financial statements for the year ended June 30, 2025, by September 30.
The requirement is anchored in the Retirement Benefits Act, 1997, and non-compliance will attract further sanctions.
