KENYA: PENSION FUND FOR COUNTY WORKERS OPENS OFFICE IN KISUMU

By Agwanda Saye

Laptrust, the pension fund for county government workers in Kenya, has opened a new branch in Kisumu as it seeks to grow revenues by strengthening its membership base in the counties.

The fund, which boasts over Ksh18 billion in assets, plans to expand to other counties and bring its services closer to members who are spread across the country.

“We have decided to open branches in every county. Kisumu is the first branch outside Nairobi we are opening in the 84 years of our existence. The decision was aimed at bringing more personalized service to our members in line with our quest to be the pension fund that serves the counties,” said Laptrust CEO Hosea Kili during the opening ceremony in Kisumu.

He added that Laptrust will soon open other branches in Mombasa, Nyeri and Garissa.

Kisumu Governor Jack Ranguma said move by Laptrust would benefit pensioners who would no longer have to travel to Nairobi to collect their dues.

“My government appreciates this noble initiative of bringing services to customers in the spirit of devolution. Kisumu is the regional hub and this office will not only serve customers in Kisumu but also others in the region,” said the Governor in a speech read on his behalf by the county executive committee member Rhoda Ahonobadha.

The pension scheme, established in 1929, is targeting to grow its asset base to Ksh 22 billion by the end of this year. The fund’s net assets improved by 17.6 per cent to Ksh4 billion in 2012 compared to Ksh3.4 billion in 2011, attributable to high returns realized from liquid investments as well as quoted equities.

“Due to the positive environment in the year under review, the scheme recorded another strong of performance with the emphasis on improving revenue collection and prudent investments across a range of assets,” Kili told the fund’s members at the annual general meeting in Eldoret on Monday.

Kili said the fund was keen on further diversifying its asset portfolio comprising mainly property, government securities and quoted and unquoted equities.

“We are restructuring our current portfolio, for instance, by investing more in private companies with strong growth potential and optimizing our property investments,” explained Kili.

He added that the fund was keen on reducing debt owed by contributors and had successfully recovered Ksh4 billion in debts by the end of last year. The number of pensioners benefiting from the scheme rose from 4,294 to 4,450 in 2012.

The fund’s membership grew from 22,685 in 2011 to 23,458 as at December 31, 2012. Kili says the improved revenue collection was also partly attributable to improved operational efficiency and enhanced customer service.

The fund’s membership comprises mostly county government employees, previously working for the defunct local authorities.

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