SanlamAllianz Kenya has launched a strategic effort to transform the country’s retirement system, framing its Income Drawdown (IDD) fund as the natural progression in retirement income solutions.
With a strong capital adequacy ratio of 283%, the insurer promotes flexibility and capital expansion for retirees in Kenya.
SanlamAllianz’s IDD fund originates from the company’s history as the first provider of annuities in Kenya.
It acts as a modern, flexible alternative to traditional annuities for retirees seeking independence and lasting support. Traditional retirement plans mainly focused on building savings over an individual’s career; however, SanlamAllianz is redirecting focus to the spending phase by launching the IDD fund, all while managing a monthly pension annuity payout averaging KSh 150 million.
“Retirement does not mean a lack of dependable income,” said Jacqueline Karasha, CEO of SanlamAllianz Life Insurance. “With the SanlamAllianz Income Drawdown Fund, your savings continue to grow while you obtain regular income, available monthly, quarterly, or yearly.” It is flexible, dependable, and designed to make your retirement years truly enjoyable.
The IDD fund operates like a retirement savings account that effectively oversees its investments. It allows retirees to secure regular payments while the remaining sum increases through market investments.
She noted that the fund aids retirees from various sectors, highlighting that in 2024, it posted a net return of 15%, with assets overseen in the SanlamAllianz Deposit Administration Fund, guaranteeing reliable competitive growth.
She also mentioned that the fund ensures a minimum return of 5%, maintaining the investment above the principal sum, which provides comfort in changing 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.
