NAIROBI (Xinhua) -- East African Community (EAC) member
states plan to harmonize their pension regimes in order
to promote labor mobility, officials said on Thursday.
Nzomo Mutuku, chief executive officer
of Kenya’s Retirement Benefits Authority (RBA), told
Xinhua in Nairobi that currently the six member states
of the EAC have different taxation levels for the
pensions industry and therefore workers could lose
benefits if they move from one partner state to another.
“All the partner states are committed
to have the same pension standards in order to promote
regional integration,” Mutuku said. EAC partner states
include Kenya, Uganda, Tanzania, Rwanda, Burundi and
The EAC common market protocol was
inaugurated in 2010 and calls for free movement of
people, labor and capital.
The East Africa Pension Supervisors
Association has completed a study on pension portability
across the trading bloc while another study on tax
harmonization will be completed in early 2019.
Mutuku said that results of the
studies will be presented to the EAC sectoral council
for approval before it is presented to the EAC heads of
state for endorsement.
He said that the pension industry
across the regional bloc is at different stages of
The RBA official noted that all
members states have pension systems that cover the
public sector but Kenya has the most advanced private
sector pension industry.
He said that a harmonized pension
regime will also include provisions to include the large
informal sector who is often excluded from pensions