SanlamAllianz Kenya Targets Pension Market Expansion with Income Drawdown Plan

SanlamAllianz Kenya has announced a strategic move to transform the retirement system in the nation, positioning its Income Drawdown (IDD) fund as the next step in retirement income. Backed by an impressive 283% capital adequacy ratio, the insurer is promoting flexibility and capital growth for retirees in Kenya. SanlamAllianz’s IDD fund is based on the firm’s history as the first provider of annuities to the Kenyan market. It functions as a modern, flexible alternative to traditional annuities for retirees seeking independence and longevity. Conventional retirement plans have mainly concentrated on accumulating and saving throughout one's career, but SanlamAllianz is currently tackling the decumulation stage by launching the IDD fund, alongside managing a monthly pension annuity payroll averaging KSh 150 million. "Retirement doesn’t mean lacking a steady income," said Jacqueline Karasha, CEO: SanlamAllianz Life Insurance. “Your funds continue to increase with the SanlamAllianz Income Drawdown Fund as you enjoy a consistent income, be it monthly, quarterly, or annually.” It’s versatile, reliable, and designed to make certain your retirement years are truly satisfying. The IDD fund operates like a pension savings account that remains invested. It allows retirees to withdraw periodic payments while the remaining balance continues to grow through market investments. She mentioned that the fund aids retirees in various ways, pointing out that in 2024, it recorded a net return of 15%, stressing that investments are sustained within the SanlamAllianz Deposit Administration Fund for optimal growth. She additionally claimed that the fund promises a minimum return of 5%, ensuring that the investment amount won't dip below the principal, providing confidence in volatile markets. “Members can choose payment frequencies (monthly, quarterly, or annually) and revise terms each year, up to a maximum of 12% of the fund balance per annum, per RBA guidelines,” she said adding that under the Tax Laws Amendment Act 2024, monthly payouts and benefits from the IDD fund are exempt from income tax, maximising the cash available to retirees. Beyond high-tier investment products, SanlamAllianz is addressing the 80% of Kenyans in the informal sector. Through Akiba Plus, a mobile-first digital platform, the insurer has simplified the retirement journey. The platform allows users to self-onboard, consolidate old pensions, and track growth in real-time, ensuring professional pension management is accessible to every Kenyan.