IRA Class 06 · Long-term (Life)
Annuities in Kenya
Lifetime monthly income paid by an insurer in exchange for a lump sum, under IRA Class 06.
What does Annuities cover?
An annuity converts a retirement lump sum into a guaranteed monthly income for life (or for a fixed period). It removes the risk of outliving your savings.
Who needs Annuities?
Retirees taking benefits from pension schemes who want certainty of income, particularly those with no defined-benefit pension.
Examples of Annuities policies in Kenya
- Single-life annuity
- Joint-life-last-survivor annuity
- Guaranteed-period annuity
Frequently asked questions
Is annuity income taxable in Kenya?
Annuity income is taxed in line with the Income Tax Act, with certain exemptions for amounts attributable to tax-deductible contributions.
Regulation
Annuities is licensed under Class 06 of the Insurance Act (Cap 487) and supervised by the Insurance Regulatory Authority (IRA). Only insurers holding a current Class 06 licence may underwrite this cover in Kenya.