The Co-operative Bank on this month of February landed a lucrative Ksh 100 billion deal as the custodian for contributions of pension funds.
The latter was awarded by the Public Service Superannuation Scheme (PSSS), the deal will allow the bank to hold funds collected in pension schemes from over 350,000 civil servants.
PSSS, incorporated in 2012, serves as a contribution scheme for the government and employees to fund retirement benefits for civil servants and is the second-largest pension scheme in the country.
Speaking during the announcement of the deal, the CEO of PSSS, Dr. Jonah Aiyabei noted, “We are now second after the NSSF (National Social Security Fund) with around Sh105 billion in assets value driven by both member and employer contributions. Combined, we are getting around Sh3.6 billion in contributions every month.
Further, the scheme covers members of the Teachers Service Commission (TSC) and the disciplined services which constitute the National Police Service (NPS), the Prisons Service and the National Youth Service (NYS).
The scheme, which is under the management of Gen Africa and CPF financial services, has recorded growth since its incorporation with collection hitting billions.
This deal comes after the bank reported profit growth in the third quarter of 2023, posting Ksh 24.3 billion, representing an 8.6 per cent increase from profits recorded at a similar juncture the previous year. The bank has one of the biggest asset base in the country.
Further, Co-op is also a market leader with the lender having been named as the overall winner for the Sustainable Finance Catalyst Awards in 2023, for the fourth time in six years by the Kenya Bankers Association (KBA).
The project will jointly be undertaken through other banks such as Stanbic and NCBA.