Is Kenya ripe for QROPS based on the Diaspora Remittance trends?

As a reknown safari tourist destination and the gradual increase in Diaspora remittances coupled with the presence of many multinational corporations   in the area of international organizations such UNEP, UNHCR offering employment to different nationalities. Me thinks that there is need for the Retirement benefits authority to be structured so as to accommodate for QROPS an acronym for Qualifying Recognized Overseas Pension Scheme a product or a scheme that enables one to enjoy various  benefits as it’s the case for British Experts working abroad  for instance if you’re planning on retiring to a low tax country or one that does not tax pension income, you could potentially enjoy your entire retirement income free of tax , If you reside in a country with no double tax treaty with the UK, you may even be subject to a higher tax rate on your pension than the top rate of tax in the UK. This is naturally far from ideal – however, if you transfer your UK pension to a QROPS, if tax is due on your pension income it is only due in your new country of residence this is just but a few of the benefits of enrolling for QROPS scheme.

From the late 80s up to late 2000 there has been a considerable surge in Diaspora remittances in the country from Kenyans living and working abroad, sources from the central bank of Kenya indicate an all time high of USD 103.97 million wired by Kenyans living abroad in February 2012 and the trend has remained slightly over USD 100 million with slight variations occasioned by global market forces such the recent US government shutdown amongst other issues. This in itself is an indicator that developing a QROPS regulation to cater for expatriates is one way of enabling the citizens enjoy tax free lump sum payments, offers room for retirees to  enjoy total diversification with this type of retirement savings scheme given the ability to access both onshore and offshore funds .

There is consensual need for the respective government authorities namely the RBA and IRA to come up with criteria for who qualifies to be registered under such a scheme. It’s one area that could easily increase investments arising out of old age benefits being spent in the markets by the pensioners while at the same time cutting down on capital flight funds especially destined for the tax haven islands of Monaco, Gibraltar and Guernsey.