Pension schemes have backed a new proposal that will allow members access up to 40 per cent of their savings to buy a home.

KIRDI Pension Scheme Trust Secretary Jackson Omamo said members look forward to owning houses as the property will be among a portfolio of their valuable assets that gain value with time.

This is a departure from the norm where money placed in pension schemes is only released at retirement or in part when a member leaves employment midway.

Under the new proposals, pension schemes will be tasked with playing an oversight role where they will retain the property ownership documents eternally until a member retires or dies, in which case it will be released to his family.

Interviewed savers welcomed the development, saying, while pension schemes are a cheap source of money for the government, the current changes will free a portion of savings to members to buy houses.