Finance minister Njeru Githae in his budget speech announced that the ministry was proposing changes in the law governing retirement benefits schemes to protect the businesses.

"Individual Retirement Benefits Schemes are important vehicle through which increased coverage of savings for retirement can be achieved. To strengthen governance and encourage their growth, I propose to amend the law to bar individual Retirement Benefits Schemes from appointing corporate trustees related with their sponsors." Read part of the statement.

The existing provisions in the law do not have an express protection of the schemes from its trustees' interest. However, Section 26 of the Retirement Benefits Act provides that "No person shall be a trustee of any scheme fund if such person is disqualified under any other written law, or his holding office as such is deemed by the Authority as being, in any way, detrimental to the scheme."

The amendments, Githae says will go a long way to remove conflict of interest in the administration of the schemes which he termed "important" and safeguard the interests of Kenyans who save through these schemes.

There are a total of 22 registered individual pension plan providers booked by the Retirements Benefits Authority in the country.