Treasury bars early access to pension money

What you need to know:

  • It will be a boon for the Sh1.2 trillion pension industry, which will now see billions of shillings locked into their schemes for the long-term.

  • Workers will only receive their part of the contributions without their employers’ portion.
  • The government stands to be a beneficiary of the change in policy given that it will now have a bigger pool of funds to tap into for its domestic borrowing needs.

You will no longer be able to access pension contributions from your employer until retirement. In another flip-flop of the pension regulations, the National Treasury has reversed regulations that had allowed employees to withdraw up to half of pension contributions by their employers before they attained retirement age.

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