A trust and a separate legal entity
The scheme is established as a trust and as a separate legal entity by the founding company, Enwealth Financial Services Limited.
Kesho Hela Income Drawdown Fund
Income drawdown Fund provides an option to retired members of a scheme to draw down regular income from their retirement savings as an alternative to traditional annuities offered by insurance companies. Kesho Hela is a registered retirement scheme that allows a retiree to reinvest their accumulated retirement savings and is set up to provide regular income.
- Regular income whilst the balance is being invested
- Minimum drawdown period of 10 years
- Open to members who have reached retirement age
How it works
How does it work
- 1
Regular income
Provides a regular income whilst the balance is being invested.
- 2
Governance in place
Operates like a normal registered retirement scheme with the governance structures in place.
- 3
Income reinvested
Income of the investments is clawed back and forms part of the running balance.
- 4
Drawdown percentage
Members draw down a percentage of their running balance as prescribed by the Retirement Benefits Regulations.
- 5
After 10 years
The minimum drawdown period is 10 years, after which the member shall decide whether to continue with the drawdown, purchase an annuity or take the full lump sum.
Governance
Governance of the Scheme
Registered and regulated in Kenya
It is registered and regulated by the Retirement Benefits Authority (RBA) and the Kenya Revenue Authority (KRA) for tax exemption benefits.
Assets held by a custodian
The scheme assets are held by the appointed custodian in a nominee account and separated from the assets of the Custodian and the founding company, enhancing the security of your retirement nest egg.
An independent Corporate Trustee
The scheme has an appointed Corporate Trustee who is independent from Enwealth Financial Services Ltd and watches over the operations of the scheme on behalf of the members.
Benefits
Benefits of an Income Drawdown Fund
Tax exempt
Investments that are moved into the income drawdown are tax exempt, as opposed to one who may decide to take the lump sum, as they will be taxed according to the prevailing tax rate for the different amounts.
Continuous investment income
Investment income allows you to enjoy continuous investment income whilst drawing on your funds.
Value for your money
The income drawdown cuts to the heart of the matter, giving value for your money and making sure that you have a comfortable and progressive retirement life.
An alternative to annuities
For members who do not prefer insurance companies, the income drawdown provides a choice to opt out of annuities.
How do I join?
The member will have a session with a financial consultant, who will take the member through the product and, based on the amount transferable, generate a projection of earnings. When the member is okay with the projection, he/she will fill an application form and a nomination of beneficiary form, and sign the projection.
Who is eligible to join?
Members who have reached retirement age are eligible to join the income drawdown fund.
What happens in the unfortunate event of death?
On the death of a member, the funds will be used to provide an income to the nominated spouse(s) and/or the dependent children, either by purchase of an annuity or a continuation of an income drawdown plan to the dependants. Otherwise it shall be paid to the nominated beneficiaries or dependants.
Get in touch
Talk to us
Tell us what you need and the right team will come back to you.
- +254 20 278 8000
- retail@enwealth.co.ke
- Enwealth Business Centre, Ngong Lane, Ngong Road, Nairobi, Kenya
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