In a strange and confusing twist, President Uhuru Kenyatta’s critics mainly from the tanga tanga wing of Jubilee who have been vocal on any issue that is questionable and affects the president have been unusually silent even as a possible conflict of interest multi-million mega deal involving the first family is concluded. Opposition parties have also been silent on the matter, causing observers to wonder whether the country’s major political players are birds of a feather which flock together when it really matters. Interestingly, major media houses appear to have given the issue a wide berth too.
NCBA, a bank in which the Kenyattas have huge interests, along with Stanbic and Co-operative Bank have won a lucrative contract to keep more than Sh31.2 billion in annual pension contributions by public servants following the rollout of the fund on January 1 this year.
The Treasury picked the three banks as custodians of the billions of shillings collected from more than 350,000 civil servants, including police officers and teachers, who started contributing to their own pension saving scheme eight months ago.
CPF Financial Services Limited will be the fund administrator for the Public Service Superannuation Scheme (PSSS).
This development has largely gone unnoticed despite the clear danger of conflict of interest, as the bank associated with the president does business with the government.
In what sounded like a defensive statement, a senior officer at Treasury sought to dismiss any claims of financial improprieties
“The three banks (NCBA, Stanbic and Co-op) were picked from a competitive exercise and the process of contracting them is underway,” a senior source at the Treasury said without disclosing details such as bids scores or the amount that will be charged by the three banks to keep the pension assets.
All top banks officially registered as custodians of pension funds had tabled applications for the contract.
Civil servants started contributing to their pension savings scheme wit the first 7.5 percent deductions from their monthly pay in January —ending 12 years of postponement. The idea was mooted in 2008.
There are 11 officially registered custodians of pension funds in the country.
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