Operationalization of the Revised Section 38 of the Retirement Benefits Act (1997) on Accessing Retirement Benefits For Purchase of Residential House

The Retirement Benefits Authority wishes to bring to the attention of the pension industry, the Kenya Tax Laws (Amendment) Act 2020 that was assented by His Excellency President Uhuru Kenyatta on the 25th April 2020.

The new Act, has amended Section 38 of the Retirement Benefits Act (1997) to allow partial access of retirement benefits for purposes of purchase of a residential house.

This is a laudable move aimed at increasing home ownership in the country as envisaged in the housing pillar of the government’s Big 4 Agenda and allowing members of retirement benefits schemes to benefit from owning their own home at an early opportunity.

Please note that amendment of The Retirement Benefits (Mortgage Loan) Regulations is underway to operationalize this law, and we will advise stakeholders once the Cabinet Secretary, National Treasury and Planning gazettes the amendments.