As I mentioned in my previous blog post, I conducted an interview with the CEO of the Mbao Pension Plan. This is the new individual retirement plan that is trying to change how Kenyan jua kali (informal economy) workers plan and save for the future. This new program registered by both the Kenya Revenue Authority and the Retirement Benefits Authority aims to create individual retirement saving plans for workers who do not have retirement pensions.
Below is additional information that I learned from the interview for those interested in learning about this affordable, flexible and convenient retirement plan. Such a plan is one example of how different types of financial services in Kenya are becoming "micro." Microfinance in Kenya is continually transforming.
-What are all of the requirements for a member to withdrawal from the program? The member must notify the head office with a letter of request to withdrawal from the program.
-Is there a penalty fee for early withdrawal? There is a fee, but it is minimal. I was unable to learn the exact figure.
-Are taxes paid after withdrawal? No.
-Is there an age requirement for membership and withdrawal? Any Kenyan older than 18 years.
-How much interest is earned? At least 7%.
-Are penalties charged for no contribution of the required amount each month? No.
-Can a member withdraw their contributions in one sum? There are two options. First, a member can receive the total sum of their contributions. Second, a member can receive half of their contributions then schedule monthly disbursements.
-What is the time period it takes for a member to receive his or her contributions when exiting from the plan? Two weeks.
-How do members receive their contributions? Contributions are issued through a check that can be picked from a chapter office. In the future, contributions will be disbursed through M-PESA or AIRTEL.
-How do members receive their yearly statement documenting their contributions? The complimentary yearly statement is delivered to the member’s phone.
-Is training provided to members of the plan? Training is not currently provided, but in the future members will have access to training.
Information about the plan and membership plan application forms can be found at: http://www.rba.go.ke/component/content/article/81
hi am Kevin and want to save with you guys for a maximum of three years
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