CPF Financial services plans to roll out a Sharia compliant pension fund in the country as it seeks to diversify its products.
The fund’s CEO Hosea Kili says demand for Sharia compliant pension products has considerably grown since they were licensed by the Retirement Benefits Authority.
Many financial institutions in the country have been offering Sharia complaint products in a bid to being inclusive as well as expand their market share.
Unlike the conventional pension fund, the compliant schemes are prohibited from the payment of receipts of interests and are also forbidden from investing in alcoholic and tobacco products.
Experts are of the opinion that Sharia products are yet to gain ground in the country’s financial sector which may hamper the country’s quest to become a global financial centre.
They urged more institutions to incorporate Sharia compliant products in their services to invest in the soon to be rolled out Islamic bonds by the government.
Kili says talks are underway to recover outstanding pension remittance from county governments where Nairobi and Mombasa Counties owe the fund over 18 billion shillings in arrears.
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