KMTC Retirement Benefit Schemes Record Remarkable Growth
The Kenya Medical Training College (KMTC) Retirement Benefit Schemes posted impressive revenue growth for the calendar year 2021, the scheme said on Thursday (April 21, 2022) during its Annual General Meeting (AGM).
Defined Contribution Scheme (DCS) surged 31 percent year-on-year to Ksh 2.5 billion, while Defined Benefit Scheme (DBS) soared 42 percent to hit Ksh 2.4 billion.
The revenue growth was driven in part by an increase in investment in government securities and domestic-listed equities and positive business performance in the Nairobi Stock Exchange, owing to the easing of CIVID-19 related restrictions.
In his statement, the Chairperson Board of Trustees Mr. Hillary Rotich noted that despite the economic gloom brought by the COVID-19 pandemic, the sponsor of the pension scheme — the KMTC Board of Directors, had continued to remit its share of mandatory contributions.
“I note with gratitude that the contribution under the DCS, the active fund, improved drastically by 19.58 percent to hit Ksh 404.4 million,” he said.
KMTC Board Chairperson Amb. Zachary Muburi-Muita reported that the Board of Directors had contributed a total of Kshs 328.5 million under the two schemes, representing a growth of 14.4 percent from remittances registered in 2020.
Amb. Muita further reported that to lessen the burden on the Schemes’ members Group Life Assurance Policy brought about by untimely deaths of staff while in service, accounting for two-thirds of the administrative expenses, the Board of Directors will be reviewing a possibilities of taking over the cost by the sponsor.
During the meeting, the representatives of the two schemes urged contributors to effectively plan for their retirement by embracing income savings.