SanlamAllianz Life Insurance Kenya has unveiled an Income Drawdown (IDD) Fund. The insurer says the new fund is designed to provide retirees with flexible income options while allowing their remaining savings to continue growing through market investments.
The launch comes amid growing industry concerns that many Kenyan retirees exhaust lump-sum pension withdrawals within an average of three years, exposing them to financial vulnerability in later life.
According to Jacqueline Karasha, CEO of SanlamAllianz Life Insurance, the Income Drawdown Fund offers retirees continued capital growth alongside structured income withdrawals.
“Retirement doesn’t mean lacking a steady flow of income. 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,” she said during the launch.
How the Income Drawdown Fund Works
The IDD fund operates similarly to a pension account that remains invested. Retirees withdraw regular instalments and the remaining balance continues earning returns within the SanlamAllianz Deposit Administration Fund.
This is what the fund offers
- Flexible withdrawals giving members the choice of monthly, quarterly or annual payments. Withdrawals are capped at 12% of the fund balance per year as is stated in the Retirement Benefits Authority (RBA) guidelines.
- Guaranteed minimum return of 5%. This means that the investment value does not fall below principal.
- Market-linked growth with a net return of 15% recorded in 2024.
- Exemption from income tax Under the Tax Laws (Amendment) Act 2024.
Jack Mara, Head of Corporate Business at SanlamAllianz Life Insurance, noted that retirement planning must address three stages: accumulation, growth and consumption.
“Historically, much attention has been placed on saving and growing retirement funds. The consumption phase, how retirees sustainably draw income, is now becoming equally critical,” he said.
Beyond high-tier investment solutions, SanlamAllianz is also targeting the informal sector through its mobile-first digital platform, Akiba Plus. The platform allows users to self-onboard, consolidate pension accounts and track investment growth.
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Also Read: How SanlamAllianz Plans to Use Technology to Transform Kenya’s Insurance Market After Rebrand
