Kenyans in the informal sector are being encouraged to join pension schemes and start saving for retirement to ensure a secure future.
Despite the total assets under management amounting to over Ksh 1.7 trillion as of December 2023, only 26 percent of the labour force is actively saving for retirement, according to the Retirement Benefits Authority (RBA).
During the official opening of a five-day Huduma clinic in Mombasa, aimed at educating residents on the importance of saving for retirement, RBA Chief Executive Officer Charles Machira emphasized that formal employment is not necessary for pension scheme enrollment.
“The public needs to be informed that formal employment is not a prerequisite for pension scheme enrollment, there is importance in saving and planning for retirement.” Sais Macharia.
He called on stakeholders in the pension industry, including the media, to help reverse the trend of poor retirement savings by enlightening Kenyans on the importance of saving for retirement and the various options available by noting the significant impact of sensitization efforts like the Huduma clinic, especially given alarming statistics indicating that approximately 7 out of 10 Kenyans risk falling into poverty upon retirement due to inadequate savings
“The initiative targets informal sector workers, aiming to enlighten them on the various avenues available for retirement savings We’re providing free retirement preparation training for scheme members nationwide and RBA is collaborating closely with other stakeholders, including individual pension plans, to raise awareness among all Kenyans about the importance of retirement savings,” added Macharia.
Addressing the challenges retirees face in accessing their benefits, Machira promised to ensure that retirees receive their benefits within 30 days after retirement, as prescribed by law.
“We will follow up and ensure every retiree gets their benefits 30 days after thie day of retirement,” he assured.
Huduma Centre CEO Mugambi Njeru affirmed the partnership with the RBA to bring services closer to the people, ensuring accessibility and inclusivity for all.
Mombasa Deputy County Commissioner Ronald Mwiwawi praised the initiative for providing a prime opportunity for residents to learn how to start saving and securing their futures.
“Anyone earning an income can enrol in an individual pension scheme today and start saving for retirement, we urge all Mombasa residents to seize this opportunity to educate themselves and make informed decisions about securing their retirement.
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