WertBlog

  When investing KES 10,000 per month, the choice between a private pension scheme and other popular Kenyan investment vehicles depends on your goals for liquidity, tax efficiency, and long-term returns . Investment Option Typical Annual Returns (2024/25) Liquidity (Access to Cash) Tax Implications Best For... Private Pension 12% - 15% Low (Locked until 50, or tax penalties for early exit) High Efficiency : Up to KES 30,000/mo tax-deductible . Retirement, long-term wealth, and immediate PAYE tax relief. Money Market Fund (MMF) 14% - 16.5% Very High : Withdraw within 24-48 hours. 15% Withholding Tax on interest earned. Emergency funds and short-term goals. Sacco Savings/Shares 10% - 20% (Dividends) Moderate: Requires 60-day notice to withdraw deposits. 10% - 15% Withholding Tax on dividends. Accessing low-interest loans (3x your savings) and high dividends. Treasury Bonds 13% - 16.5% Moderate: Can be sold in secondary market (NSE). 10% - 15% Withholding Tax (Tax-free for Infrastruct...

  This report provides a detailed overview and comparative analysis of leading private pension scheme providers in Kenya, focusing on their costs, value propositions, guaranteed minimum interest rates, and overall performance. The analysis aims to inform individuals seeking to invest approximately KES 10,000 per month for their retirement planning. Overview of Key Providers The Kenyan private pension landscape features several prominent providers, each offering distinct advantages. Based on recent performance and product offerings for 2024-2025, the following schemes are notable: Provider 2024 Declared Return Guaranteed Minimum Rate Management/Admin Costs Key Value Proposition Zimele 15.0% Market-linked / Guaranteed Fund 2.5% p.a. management fee; No entry/exit fees . Offers a low entry barrier (KES 100), high flexibility in contributions, and has consistently delivered competitive returns . Sanlam Kenya 15.0% 5.0% (typically) Competitive (approximately 2% p.a.) Demonstrated strong ...