By Eddah Waithaka
SanlamAllianz Kenya has unveiled a strategic shift in the country’s retirement landscape, positioning its new Income Drawdown (IDD) fund as a flexible, modern alternative to traditional annuities.
Backed by a market-leading 283% capital adequacy ratio, the insurer is championing a move toward capital growth and customized income for Kenyan retirees.
The IDD fund builds on SanlamAllianz’s heritage as the first provider of annuities to the Kenyan market. While traditional retirement plans have focused heavily on the accumulation phase saving while working, the insurer is now confronting the decumulation phase head-on.
The company continues to manage an average monthly pension annuity payroll of KSh 150 million, even as it promotes the new drawdown option. “Retirement doesn’t mean lacking a steady flow of income,” said Jacqueline Karasha, CEO of SanlamAllianz Life Insurance.
“With the SanlamAllianz Income Drawdown Fund, your savings continue to grow even as you receive regular income, monthly, quarterly, or annually. It is flexible, reliable, and designed to make your retirement years truly rewarding.”
The IDD fund operates like a pension bank account that remains invested. It allows retirees to withdraw regular instalments while the remaining balance continues to grow through market investments.
The SanlamAllianz Income Drawdown Fund delivers market-leading returns while protecting retirees’ capital. In 2024, the fund declared a net return of 15%, with investments sitting securely within the SanlamAllianz Deposit Administration Fund to ensure competitive growth. A 5% minimum guaranteed return ensures the investment value never drops below the principal, giving retirees peace of mind even in volatile markets.
The fund also offers flexibility and tax efficiency tailored to individual needs. Members can choose payment frequencies—monthly, quarterly, or annually—and revise terms each year, up to a maximum of 12% of the fund balance per annum, following Retirement Benefits Authority (RBA) guidelines. Under the Tax Laws Amendment Act 2024, monthly payouts and benefits from the IDD fund are exempt from income tax, maximizing the cash available to retirees.
Beyond high-tier investment products, SanlamAllianz is also addressing the 80% of Kenyans working in the informal sector.
Through Akiba Plus, a mobile-first digital platform, the insurer has simplified the retirement journey. The platform allows users to self-onboard, consolidate old pensions, and track growth in real-time, ensuring professional pension management is accessible to every Kenyan.
With the launch of the IDD fund and the expansion of digital tools like Akiba Plus, SanlamAllianz Kenya is positioning itself at the forefront of a more flexible, inclusive, and growth-oriented retirement future.
