RBA Sets October 31 Ultimatum for Pension Schemes in Levy Payment Standoff
The Retirement Benefits Authority (RBA) has sounded the alarm to all trustees, administrators and service providers of pension schemes to pay the retirement benefits levy before the October 31, 2025 deadline.
In a notice issued on Tuesday, September 9, the Authority reminded stakeholders that the Constitution requires levies to be remitted within four months after the close of the financial year which ended on June 30, 2025.
Any scheme that fails to meet this requirement will be charged a 5% monthly penalty on the unpaid levy.
“Default in payment of the levy attracts 5% per month on any amount outstanding,” the notice stated.
To make it easy for compliance RBA has directed that all payments be made through the eCitizen platform and confirmation emails sent directly to the Authority. Schemes should also submit their registration details, names and levy amounts when forwarding proof of payment.
Beyond fines RBA warned that non compliance will affect a scheme’s risk rating and put retirees’ pensions at risk. Poorly managed schemes increase the likelihood of mismanagement or delay in payment of benefits.
Kenya’s pension industry is a critical pillar of financial security with assets under management standing at Ksh2.25 trillion as of December 2024 up from Ksh1.7 trillion the previous year. This growth was mainly driven by higher contributions to the mandatory National Social Security Fund (NSSF).
In addition to the levy RBA has also directed schemes to submit their audited financial statements by September 30, 2025 in line with the Retirement Benefits Act, 1997. The law requires schemes to file such reports within three months after the close of the financial year and defaulters will be charged extra penalties.
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RBA Sets October 31 Ultimatum for Pension Schemes in Levy Payment Standoff