Frequently Asked Question
Mwavuli offers three types of pension arrangements:
Mwavuli Pension Fund for Employers.
Mwavuli Individual Pension Plan for Individuals
Mwavuli Income Drawdown Fund – for retirees and individuals who want to receive regular payments whilst their balance remains invested in the Fund.
The Mwavuli Pension Fund is suitable for Employers who want to enroll their staff into a collective pension arrangement with benefits being paid to the staff members on exiting the service of the employer.
Mwavuli Pension Fund is suitable for Corporates, SMEs and startup companies that need a pension plan for their employees.
The Mwavuli Individual Pension Plan is suitable for individuals who want to save voluntarily for their future or even independently from their Employer. Eligible individuals include:
- Self-employed individuals both in formal and informal sectors.
- Individuals whose employers do not offer a retirement plan.
- Small groups and chamas who want to save for the future.
- Any other person who wants to save for their future.
The Mwavuli Income Drawdown Fund is suitable for individuals who would want to receive regular payouts whilst their fund balance remains invested. This would include retirees as well as any other individual who desire to receive regular payments. Income Draw Down acts as an alternative to an annuity.
Mwavuli Pension Fund – Both Employee and Employer may contribute to the Scheme at say 5%, 10% or even 20% of salary. The contribution rate is determined by the Employer.
Mwavuli Individual Pension Plan – Contributions to the Individual Plan are flexible based on the choice of a member. A minimum contribution of KES 50 is payable.
Mwavuli Income Drawdown – A member can make a one-off or adhoc contribution.
Contributions are invested with our panel of licensed and registered investment providers and earn interest. Our current panel of investment providers include CIC, Britam, ICEA LION, Jubilee and Kenindia.
Yes. Contributions receive tax exemption. Benefits receive preferential tax treatment as per provisions in the Income Tax Act.
Every member and Employer has access to the online portal to view their member statements showing contributions, interest, withdrawals and balances.
Yes, some of our investment providers provide guaranteed returns. The typical minimum return by a guaranteed investment provider is 4% p.a.
The advantages of joining the Mwavuli Pension Options include:
- Various methods to make contributions including through bank and M-Pesa
- Contributions are invested and earn interest.
- Contributions and investment returns are tax exempt.
- Online tracking of contributions and balances.
- Flexible choice on the amount of contributions.
- No need for a member to be attached to an employer.
- Various options for payout of benefits to a member
- Easy transfer of funds in and out of the Mwavuli options.
- Experienced, friendly and knowledgeable members of staff.
In addition, under the Individual and the Income Drawdown Options, a member is allowed to make partial withdrawals.
The benefits are payable in the event of:
- At the Normal Retirement Age as defined by the Employer;
- On Early retirement;
- On the unfortunate death of a member, beneficiaries are paid the benefits;
- In resignation subject to regulatory requirements
- In the unfortunate event of illness of a member
In addition, under the Individual and the Income Drawdown Options, a member is allowed to make partial withdrawals
Yes. Mwavuli Administrators is licensed by the Retirement Benefits Authority (RBA) as a Pension Administrator. All our Pension Options are also licensed by the Retirement Benefits Authority as pension schemes.