Financial Service Provider Octagon sees growth of assets following Alexander Forbes Zambia buyoutMarch 3, 2020
NAIROBI, Kenya, Mar 3 – Nairobi based financial service provider Octagon Africa expects to increase its pension schemes assets by 40 percent this year, hot on the heels of the Alexander Forbes Zambia unit buyout.
This is according to Octagon’s CEO Fred Waswa who says the firm will be receiving between 30 to 40 new clients from global private companies operating in Kenya.
Currently, Octagon Africa administers Sh100 billion in assets.
“The partnership has given us the opportunity to tap into new clients which
will help us increase our revenue base where majority of them are coming from the US, a couple of them South Africa and a few of them from Europe,” said Waswa.
Some of the services to be offered to Alexander Forbes clients by Octagon Africa include providing pension administration, insurance brokerage, employee benefits and risk consulting services.
Waswa said the partnership will help it expand into new markets across the African continent where they will share revenue at the end of every year.
“It also helps us move into other countries like Rwanda and Ghana which we have desired to do in a long time but now we will be moving there with our hands,” he added.
The partnership comes at a time when pension uptake in Kenya increased by 22 percent that was brought about by new schemes suiting the informal sector.
“What is driving that increase in coverage is the new schemes that were launched targeting the informal sector,” said Chief Executive Officer Retirements Benefit Authority Nzomo Mutuku.
Alexander Forbes has been implementing a turnaround strategy in the last one year that saw it exist markets such as Uganda and Zambia.
It has also disposed of some of its businesses such as property and casualty unit in South Africa.