PENSION BACKED MORTGAGE
The Retirement Benefits (Mortgage Loans) (Amendment) Regulations 2020 was gazetted vide Legal Notice 192 dated 14th September 2020.
According to the regulations, members are allowed to access up to 40 percent of their accrued benefits for residential house purchase provided the sum shall not exceed seven million shillings.
The Kenya Power Pension Fund Trustees approved the same and have made available the Pension Backed Mortgage facility. Members are now allowed to access up to 40% of their accrued benefits from both the Defined Benefits (DB) Scheme and Defined Contribution (DC) Scheme for purposes of purchasing a residential house.