22 January 2013

Kenya: CIC Subsidiary to Manage Pension Funds

Nairobi — The Retirement Benefits Authority (RBA) has licensed CIC Asset Management Limited, a subsidiary of leading co-operatives insurer, CIC Insurance Group Ltd, to manage pension funds.

CIC Asset Management Managing Director, Peter Mwaura, said the company will leverage partnerships with co-operatives and chamas across the country to grow the business.

"We want individuals and corporate organisations to enjoy the benefits of pension funds run professionally," he said during the CIC Insurance Group Independent Insurance Agents Awards in Nairobi.

He said the company will use Information and Communication Technology (ICT) to reduce the cost of doing business and enhance efficiency in management of pension funds.

There have been concerns from the public that most pension funds are mismanaged and performance is poor.

"We have established a sales force that will go to the market and look for pension schemes that are not being run professionally so that we can turn them into funds that can generate more wealth to pensioners," he revealed.

CIC Asset Management Ltd expects to rake in Sh4 billion from its Unit Trust business in 2013 and Mwaura revealed the company earned Sh2.4 billion within the first year since it was licensed to trade in unit trusts.

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