Annual Report and 1 Financial Statements CORPORATE ADMINISTRATOR 2018 CPF Individual Pension Plan Integrated Report & Financial Statements A SMALL SAVING TODAY, A GREAT LIFE TOMORROW. 2 Annual Report and Financial Statements OUR VISION “To improve the quality of lives of members” OUR MISSION “To provide innovative retirement benefi ts that enhance the social –economic welfare of all the contributors and benefi ciaries” CORE VALUES • Team spirit • Innovativeness • Professionalism • Integrity • Customer Focus Annual Report and 3 Financial Statements #JisetinaMpension CONTENT 02 Vision & Mission 03 Table of Contents 04 Notice of the Annual General Meeting 05 Trustees and Professional Advisors 06 Corporate Administrator’s Management Team 08 Corporate Administrator’s Report 12 Corporate Governance Statement 13 Report of the Trustees 15 Statement of Trustees’ Responsibilities 16 Independent Auditors’ Report 18 Statement of Net Assets Available for Benefi ts 20 Statement of Cash Flows 21 Notes to the Financial Statements 4 Annual Report and Financial Statements NOTICE OF THE ANNUAL GENERAL MEETING Notice is hereby given that the 5th Annual General Meeting (A.G.M) of the CPF Individual Pension Scheme will take place on Thursday 27th June, 2019 at the PrideInn Paradise Beach Resort & Spa, in Mombasa County starting from 8.30 A.M to 1:00 P.M. Agenda 1. Introduction and opening remarks 2. Address by Chief Guest 3. Reading of the Notice of the meeting 4. Reading and taking note of the minutes of the Annual General Meeting held on 20th July, 2018 5. Presentation of the Chairman’s report 6. Presentation of the Administrator’s report 7. Presentation of the Scheme’s Custodian Reports 8. Presentation of the Investment Manager’s reports 9. Presentation of the Financial Statements and Audited Accounts for year 2018 10. Award Ceremony 11. Question and Answers 12. Presentation by Stakeholders of the Scheme 13. Vote of thanks By order of the Board HOSEA KILI, OGW GROUP MANAGING DIRECTOR/CEO CPF FINANCIAL SERVICES LTD; THE SCHEME CORPORATE ADMINISTRATOR FOR & ON BEHALF OF THE TRUSTEES OF CPF (INDIVIDUAL) PENSION SCHEME Annual Report and 5 Financial Statements TRUSTEES AND PROFESSIONAL ADVISORS Registered Offi ce CPF House, 7th fl oor Haile Selassie Avenue P O Box 28938, 00200 Nairobi Corporate Trustee Natbank Trustee and Investment Services Limited Harambee Avenue, P.O Box 72866, 00200 Nairobi Administrators CPF Financial Services Limited CPF House, 7th fl oor Haile Selassie Avenue P O Box 28938, 00200 Nairobi Auditors Deloitte & Touche Certifi ed Public Accountants (Kenya) Deloitte Place Waiyaki Way, Muthangari P O Box 40092, 00100 Nairobi Investment Managers Co-op Trust Investment Services Limited Co-operative Bank House P O Box 43231, 00100 Nairobi Custodians Equity Bank Limited Custody Services Equity Centre, Hospital Road P O Box 75104, 00200 Nairobi Bankers Kenya Commercial Bank Limited Moi Avenue Branch P O Box 30081, 00200 Nairobi Annual Report and 6 Financial Statements JOSEPH RONO Director - Strategy, Finance and Investments Joseph Rono is a Finance and Investments profes- sional with over 15 years’ experience in private and public sector development in the East African region. His key areas of expertise include Strategy, fi nance and Investments with a special interest in ICT, Strate- gy formulation and implementation. Mr. Rono is a recipient of numerous awards including “Chief Investment Offi cer of the Year” Award at the 2017 Pension Awards. He is a Certifi ed Public Ac- countant (CPA K) and holds a BSc. Mathematics and Computer from the Jomo Kenyatta University of Agri- culture & Technology (JKUAT) and an MBA in Finance HOSEA KILI, OGW from the University of Nairobi. Group Managing Director/ CEO An advocate of the High Court of Kenya, Mr. Kili holds a Masters of Business Administration from the Man- agement College of Southern Africa (MANCOSA). He TEAM is a Fellow Member of the Institute of Certifi ed Public Secretaries of Kenya (ICPSK); a Fellow and Council Member of Kenya Institute of Management (KIM) and an active member of the Law Society of Kenya (LSK). Mr. Kili serves as a Council member of the East and Central Africa Social Security Association (ECASSA) and a Non-Executive Director at the Nairobi Securi- ties Exchange (NSE). He is currently the Chairman of the Association of Pensions Administrators of Kenya (APAK). A recipient of numerous commendations, Mr. Kili was CHRISTINE NYAMWANDA awarded the Presidential Order of Grand Warrior of Director - Operations and Marketing Kenya in December 2011 and the 2nd Runners up CEO of the Year at the COYA Awards 2012. He was also recognized as the Personality of the Year at the 2017 Pension Awards that sought to award excel- Christine Nyamwanda was the Director of Operations lence in innovation and service provision to improve and Marketing at CPF Financial Services. She brings the outcomes of both pension funds as well as mem- on board over 15 years of experience in the Retire- bers. Mr. Kili was also recognized as the 2nd Runners ment Benefi ts and Financial sectors with key skills up in the ‘CEO of the Year’ category during the 2017 in Strategy Development, Sales and Client Service. Champions of Governance Awards. Christine has over the years served in some of the leading local and international institutions off ering Custody services, Scheme Administration, Consult- ing and Fund Management. She holds a Bachelor of Commerce Degree from the Catholic University of Eastern Africa and is currently pursuing a Masters in Public Policy Management at ADMINISTRATOR’S MANAGMENT ADMINISTRATOR’S Strathmore university. Annual Report and Financial Statements 7 TONY OLANG Director - ICT EBLA MOHAMMED Group Head of Human Resource & Administration Mr. Tony Olang, in a career spanning over 19 years in fi nancial services, ICT and renewable energy sector Ebla holds an MBA in Business Administration from has contributed signifi cantly towards the adoption of the United States International University (USIU), a technology for business processes in the region and Bachelor’s Degree in Sociology from the University of more so for the CPF Group. Nairobi and a Post-Graduate Diploma in Human Re- ISAAC MITEI source Development from the University of Nairobi. He holds an MSc in information System Security from Group Head of Legal & Company Secretary She has over 15 years of comprehensive human cap- the Universidad Empresarial de Costa Rica, a Post- ital management experience and is a Member of the graduate Diploma in Information Systems Security Institute of Human Resource Management (IHRM). from the Cambridge Association of Managers as well as a BSc. in Computing from the University of Ports- Mr. Mitei, is currently the Group Company Secretary mouth. and Head of Legal with CPF Financial Services. An Advocate of the High Court of Kenya, Isaac Mitei has over 12 years experience in the Legal fi eld. He holds an Honours Law Degree from Moi University and a Diploma in Law from the Kenya School of Law. Isaac is a member of the Law Society of Kenya (LSK) and the Institute of Certifi ed Secretaries of Kenya (ICPSK) SOSPETER THIGA Group Head of Risk and Compliance JONATHAN MARUCHA Director - Insurance Services Sospeter holds an MBA in Strategic Planning and a BSc. Economics & Sociology from the University of Mr. Marucha holds an MBA in Strategic Management, Nairobi. He is a Certifi ed Public Accountant of Kenya Bachelor of Commerce (Insurance), a Diploma in In- (CPA K), a member of the Institute of Certifi ed Public surance from the Chartered Insurance Institute (CII) Accountants of Kenya (ICPAK), a certifi ed Risk An- and a Certifi cate in Life Assurance from LIC India. He alyst (CRA), a certifi ed Information System Auditor is a member of the Insurance Institute of Kenya (IIK), (CISA) and a Certifi ed Change Management Practi- Insurance Brokers of Kenya (A.I.B.K) and a trained di- tioner (Prosci). rector by the Center for Corporate Governance. Jonathan is a multi-skilled insurance professional with over 13 years’ experience in business development, portfolio management, claims management, insur- ance regulatory compliance, risk assessment and valuation. IRENE MBONGE Group Head of Corporate Communication and Public Affairs Irene is a Chartered Public Relations practitioner with 10 years’ experience in the areas of Corporate Communications and Public Aff airs. She holds an MBA in Marketing from the University of Nairobi and CORNELIUS NDUMAI a post graduate diploma in Public Relations from the Group Head of Internal Audit Chartered Institute of Public Relations (UK). Irene is the interim Chair of the Chartered Institute of Public Mr. Ndumai is a Certifi ed Public Accountant, an ac- Relations – Kenya Chapter (CIPR-K), a member of tive Member of the Institute of Certifi ed Public Ac- SHAFANA RAJANI the Public Relation Society of Kenya (PRSK) and a countants of Kenya (ICPAK), the Institute of Internal General Manager, Property Services Standing Committee member of the East and Central Auditors of Kenya (IIA-K) and Information Systems Africa Social Security Association (ECASSA). Audit and Control Association (ISACA). He holds a Shafana has over 15 years of professional business Bachelor’s degree in Administration (Accounting), an management experience with 7 years in the real es- MBA in Finance from the University of Nairobi, and tate industry having served with an international Real a Post-graduate Diploma in Banking & Finance. Mr. Estate company previously. She holds a BSc. De- Ndumai is an accomplished Financial and Audit pro- gree in International Business Administration and a fessional and brings on board over ten (10) years of MA Degree in International Relations both from the expertise. United States International University – Africa. She is currently pursuing a PHD Program in Business Man- agement. Shafana is a Member of Marketing Society of Kenya. 8 Annual Report and Financial Statements CORPORATE ADMINISTRATOR’S REPORT It gives me great pleasure to present to you the annual report and fi nancial statements for the year ended 31st December, 2018; during which the Individual Pension Scheme recorded positive growth despite the challenging business environment.