Octagon Africa


We provide innovative services that ensure that our clients live gracefully with dignity and comfort after their retirement.

Accounting for Schemes

We keep books of accounts by recording assets, income and expenses of the scheme. We engage investment managers and custodians on a regular basis to obtain bank statements and reconcile them, resolving any unreconciled items and prepare on a quarterly basis a set of accounts for presentation to trustees. The accounts include net assets statement, revenue and expenditure account and accompanying notes.

We prepare and make tax returns at the end of financial year and as well we make payments for installment taxes and handle any issues from Kenya Revenue Authority on behalf of the trustees. we prepare scheme annual budgets for discussion and approval.

Product Detail

  • Full trustee report and accounts
  • Cash flow management
  • Investment accounting
  • Quarterly accounts
  • Tax payments and returns

Plus Points

  • Octagon retirement scheme accounting services are delivered by a team of fully qualified accountants with a strong background in the pensions industry.
  • We work with Trustees and their service providers to develop accounting solutions tailored to meet their needs; taking responsibility for all accounting information and adhering to accounting standards at all times.
  • Whether a single set of audited accounts is needed or a complete solution for tax payments and reports, we can deliver a suite of services that are as unique as our clients.

Children's Trusts

We establish  trust funds to provide for children , in the event of a contributor’s demise. This trust fund provides for school fees and other basic needs of the children until they are of age. This ensures that they still are able to meet their goals even in the absence of their parents and every parent wants to have the peace of mind that the children will be safe and comfortable.

Product Detail

  • Source of funds could be life policies, group personal accident benefits, group life assurance benefits, income from assets and other savings.
  • Can be set up by trustees, sponsor or nominated beneficiary.
  • Serviced by top Administrator, Investment Manager and Custodian.
  • Management mirrors Retirement Benefits Authority Regulations.

Plus points

  • Trust funds are invested in pooled funds to enhance growth of the funds to meet the ongoing liabilities.
  • Professional structures to provide advisory services to the beneficiaries in respect of management of the benefits
  • When the beneficiaries are of age and have gone through their education, the Trust fund is wound up and benefits paid to them in agreed proportions which are specified in the Trust Deed.
  • Frequent updates and comprehensive reports on how the funds are performing
  • Facilitation of periodic audits to enhance accountability and overall management of the Trust Fund

Corporate Principal Officer

Why a Principal Officer?

  • Generally pension matters in an organisation are handled either by an HR officer or Finance officer – no focus is given to this benefit as priority is given to main stream work. Principal Officer will focus on this.
  • Most Trustees are not involved in day-to-day management of the scheme this officer becomes the execution officer for decisions of the Trustees.
  • As all key services i.e. administration, fund management and custody are outsourced as required by law, the officer provides the link between the Trustees, Bank and the outsourced service providers.
  • There are other services that Trustees need e.g. audits, property management services, actuarial valuations, member communication – these services may not be provided well by the main service providers hence the assistance of a principal officer in sourcing for these services and monitoring their performance is key.
  • A principal officer should be the official secretary and hence the contact person for the regulators to correspond with.
  • The introduction of contracting out of NSSF requires more involvement of the employer in retirement scheme matters hence a principal officer is required to ensure compliance and better management of the employees’ benefits.
  • The administrator has too much on their hands to deliver a personalised service for areas not necessarily covered under the Agreement.

Why out-source?

  • Advice on expertise in pensions will exist for the Company from an outsourced provider.
  • This will reduce administrative work for HR and allow HR to focus on core HR work.
  • Having a third party provider of this service will enhance segregation between the Fund and the Company.
  • With increased demand for better management of retirement schemes, an outsourced service will bring the required professional input which may not be found in-house, unless the Company develops a pension skill internally – this is not core business.
  • Manage cost – an outsourced service will be cost effective compared to an in-house resource who will need all kinds of benefits and space.
  • An outsourced provider will bring on board best practice and wide experience in the management of retirement scheme matters, while an in-house resource may be limited.

Why Octagon Pension Services Limited?

  • We have developed this service over the last 7 years into a robust platform to support Trustees and sponsors of retirement benefits scheme.
  • Our senior managers introduced this service in the industry over 17 years ago and are well versed on how to implement.
  • We are the only the local company that provides this service with a passion.
  • We have wide experience of providing this service to multi-national companies like Coca-Cola, Ecobank, Standard Chartered Bank Kenya and Uganda, Nairobi Bottlers Limited. We will bring this experience and best practice on board for better management of the scheme.
  • We will bring on board our experience in management of death benefits which we have gathered in our service provision.
  • We have the resources necessary to provide this service.

Corporate Scheme Administration

Pension scheme administration is at the heart of what we do and has been our passion for over 6 years as an organization. Trustees are not expected to be professional administrators; we come in to provide service and advise to ensure the trustees fulfil their obligations. We are proud of our track record in scheme administration services.

Product Detail

  • We work with trustees to develop robust migration and implementation plans
  • We use market leading technology to provide high quality pensions administration service.
  • Our solutions cater for all types of schemes: DB, DC and Gratuities.
  • We build solid relationships by communicating consistently with members throughout the whole pension life cycle.
  • Our regular reports detail client scheme operations and compliance to ensure customer satisfaction.
  • We provide relevant advice to trustees on exercising discretions.

Plus Points

  • We provide our clients with a fully tailored service. From ensuring the integrity and accuracy of data in the initial stages of scheme migration, to the day to day administration of a scheme, and providing members with 24/7 access to their data.
  • Our administration solutions give our clients the confidence and security that their members are being well cared for enabling them to focus on their main business activity.

Octagon Income Drawdown Fund

Octagon Income Drawdown Fund is designed to provide individuals and members of retirement schemes an option to access their benefits as a regular income through an investment fund upon retirement. This is an alternative arrangement to a conventional annuity and was introduced through Retirement Benefits Authority Act, Regulation 25(6) of The Retirement Benefits (Occupational Retirement Schemes), Regulations, 2000.

A member transers  the benefits into the fund and then withdraws regular paymentson agreed frequency and the balance is invested to earn extra income. The investment income depends on the performance of the underlying investments it is not guaranteed.

    • The minimum drawdown period allowable is ten (10) years from the day of commencement of the drawdown.
    • After ten (10) years, the member can exercise the following options:
      1. The income drawdown arrangement can be continued
      2. The fund balance can be used to purchase an annuity from an insuarance company or
      3. The fund balance can be converted into a cash lump sum for the member to withdraw
    • The member may withdraw an income from his/her drawdown fund subject to a maximum of 15% p.a. (“withdraw percentage”) of the member’s outstanding  account balance
    • The member at the commencement will choose the frequency of withdrawal and fixed amounts that will be payable as income either monthly, quarterly, or bi-annually in a financial year
    • At least once in two (2) years, the individual member can opt to vary the drawdown income amounts to reflect the performance of the underlying assets and the amount remaining in the fund but not exceeding the maximum allowable drawdown.


  • Flexibility: There is flexibility to vary the income to suit the member’s needs with regard to investment choice, frequency, timing and amount withdrawals.
  • High income: There is a possibility of a higher income paid out to the member because typical annuities have built-in guarantees or dependants’ reversions which tend to reduce the level of income.
  • Pension escalation might be higher: the memeber’s income can be escalated on improved investment performance.
  • Transparency: The member gets fullvalue of the investment income earned and monitors the performance of the account.
  • Preservation of Value of Death: On the death of a member, the fund can be used to provide an income to the nominated beneficiaries either by a continuation of an annuity or if the income is not taken in this way, the balance may be paid to the nominated beneficiaries.
  • Tax advantages: The member can opt to defer or reduce the payouts in order to enjoy tax free amounts and can cash out the tax free lump sum at age 65.

How is it set up?

  • The sheme is established as a seperate legal entity as a Trust and Octagon as the sponsor
  • The Scheme Assets are held by the appointed Custodian enhancing the security of your retirement nest egg
  • The scheme assets are invested by the appointed fund manager who is licensed by the Retirement Benefits Authority
  • A Corporate Trustee is appointed to hold the fund in trust for the members and beneficiareis
  • The Scheme is registered and regulated by the Retirement Benefits Authority and Kenya Revenue Authority.

Service Providers

  • Sponsor and Administrator- Octagon Pensin Services Limited
  • Fund Manager
  • Regulators- RBA and KRA
  • Custodian
  • Corporate Trustee

How to join?

  • The member will obtain possible drawdown scenarios from Octagon subject to the maximum allowable limit
  • Octagon will recommend a fixed drawdown amount based on actuarial factors that take into consideration the member’s age, sex, assumed projected return and the life expectancy
  • The member receives the options, selects and accepts the terms of the income drawdown fund
  • The member will be issued with income draw down application form including the income drawdown schedule for execution
  • Member will then issue instructions to the Scheme to transfer the retirement benefits to the custodian of the income drawdown fund
  • Once the funds are transferred, the periodic payments to the member will begin immediately
  • The member will receive periodic statements and will have an option to review the drawdown amounts after a period of 2 year.

Octagon Personal Pension Scheme

Octagon Personal Pensions Scheme is the first segregated personal pension plan for self- employed individuals, NGOs and SMEs gives you an opportunity to save for retirement while enjoying all the tax advantages given under the Income Tax Act.

Product detail

  • No minimum contribution
  • For SMEs, NGOs and self-employed.
  • Members can choose when to retire.
  • Serviced by top Administrator, Investment Manager and Custodian.
  • Registered and Regulated by Retirement Benefits Authority and
  • Kenya Revenue Authority.
  • Since inception in 2009 average return over 10% per annum.

Click here to download joining form.

Octagon Umbrella Retirement Scheme

The Octagon Umbrella Retirement Benefits Scheme was designed for small to medium sized organisations that have a need to enrol members to a retirement benefit schemes without having to set up a stand alone scheme that requires a lot of regulatory compliance requirements at the same time saving on costs for setting up such a scheme.

The octagon Umbrella gives these organizations an opportunity to pool together into one scheme, with each organization having a flexibility to design their Trust rules like any occupational scheme while having shared service providers and governed by one Trust Deed.

This arrangement presents the following benefits to such organizations;

  • Reduced costs to the respective scheme as all services of the fund manager, custodian, trustees, administrator and auditor are co-shared in the pool
  • Improved returns to the scheme given that the funds are pooled hence enjoy the economies of scale that comes with diversification of large portfolios
  • Reduced burden on the employer as the scheme will be managed by a corporate trustee and will concentrate on their core business, while the employees will benefit from the interest received on the investments
  • Small to medium sized organisations that caanot set up a stand-alone retirement scheme come together to pool their funds under one scheme (the umbrella) for investment purposes
  • Each fund is held in a separate account but invested as one fund
  • Guided option to set up a segregated fund through the assistance of Octagon once the scheme grows to accommodate stand-alone costs
  • The compliance management of the scheme which is highly regulated by the Retirement Benefits Act will be left to the Corporate Trustee hence the employer will rest easy

Structure of the Umbrella Fund

  • The Scheme is established under an irrevocable Trust, registered with RBA and KRA with Octagon being the Sponsor of the scheme
  • The assets of the sponsor (Octagon Pension Services Limited) are separated from assets of the scheme
  • The scheme has appointed a corporate trustee to hold the fund in the members and beneficiaries
  • The Schem is a hybrid with both Pension fund and Provident Fund features
  • The employer and employee jointly contribute to the fund
  • It is segregated in nature i.e. the returns are market determined as opposed to being guaranteed
  • The investments are managed by an appointed Investment Manager
  • The assets are held in custody by an appointed Custodian
  • The scheme administrator is done centrally by an appointed administrator

The Scheme Service Providers

The scheme service providers have been appointed in compliance with the Retirement Benefits Act.

  • Sponsor & Administrator- Octagon Pension Services Ltd
  • Fund Manager
  • Regulators- RBA & KRA
  • Custodian
  • Corporate Trustee

Unique Features of Octagon Umbrella Retirement Benefits Scheme

  • No set up fee and the costs are clearly identified
  • No requirement for appointment of trustees and service providers
  • No administrative involvement for employers
  • Members can start contributing immediately
  • The Scheme will be credited with full investment income as earned
  • Transfer to another scheme attracts no penalties
  • Octagon as the sponsor has a promise to deliver with a promise to deliver a service that is passionate and personalized
  • Fund is eligible to receive Tier II contribution from the existing and new employers in respect of their employees, upon obtaining approval from RBA

Our Pension Administrative System

Our robust pension administration system will enable;

  • Individual scheme members to log in to a portal on our website with a unique password and view their member statements, contributions history and benefits computations at withdrawal.
  • The employer through the HR and the Board of Trustees will be issued with a unique log in to a portal to be able to view and check the status of the monthly contributions credited to individual member balances.
  • There will also be a provision for the members to enquire about their balances with their mobile phones via sms (USSD code).

Why Join Now?

  • One’s benefits are likely to grow significantly due to compounding factors of interest
  • It offers financial security in retirement and a fall back plan for an employee who loses employment
  • It offers finacial security in retirement and a fall back plan for an employee who loses employment

How to join this scheme

  • The management of the participating employer will meet and make resolution to join Octagon Umbrella
  • The participating employer sign a participating agreement with the Scheme. The agreement will stipulate among other things the contribution rates for both employee and employer, the retirement age and the vesting perriod
  • In addition, the participating employer will provide the following documents, copies of National ID’s of the Representatives, Pin certificate of incorporation of the Employer
  • Employees complete membership application form, nomination of beneficiaries form and provide a copy of the national identity card

Other Services

  • Scheme establishment services
  • Preparation of Trust Deeds Member booklets and Communication newsletter
  • Scheme liquidation services
  • Membership data audit services