3.4 Million Kenyans actively saving for retirement

Oct 19, 2023 - 12:40

Retirement Benefits Authority Corporate Communications Officer Alex Mugambi speaking to journalists in Kakamega. (Photo by Moses Wekesa/KNA).

Kakamega,

Thursday, October 19, 2023

KNA by Moses Wekesa

The Retirement Benefits Authority(RBA) indicates that at least 7.6 million Kenyans are saving for retirement out of the 29 million working population.

Speaking during a media sensitisation forum for Kakamega Journalists, RBA’s Corporate Communications Officer Alex Mugambi said out of the 7.6 million Kenyans with pension deposits only 3.4 million are actively saving for retirement.

He noted that RBA, through the 2019-2024 strategic plan, has reached out to 26.4 per cent of working Kenyans to save for their retirement targeting to reach out to at least 30 percent of working Kenyans by the end of the strategic plan.

Also in the strategic plan, RBA targets to increase savings for retirement to Sh2.4 trillion by the end of 2024, having attained Sh1.6 trillion in savings by June this year.

“We hope before the end of the strategic plan, we will have reached the Sh2.4 trillion target,” he noted.

Mugambi regretted that less than 2 per cent of self-employed Kenyans are saving for retirement according to a survey that was carried out by RBA in 2020.

He said according to the survey, 91 per cent of the self-employed understood the importance of saving for retirement but were reluctant to do so with the majority of the respondents saying retirement is something that will occur many years to come.

The Communications Officer challenged Kenyans to start saving as early as possible to ensure their retirement benefits increase so that they can earn interest.

Mugambi said Kenyans can select over 50 pension companies registered by RBA to start saving for their retirement in case their employer doesn’t have a scheme for them.

“An employee who has been employed where the retirement schemes are not available can enroll as an individual,” he disclosed.

Mugambi assured Kenyans that the registered pension companies are closely monitored by RBA to ensure that the monies contributed by a member are saved at an account that earns interest.

He advised the self-employed to select the plans they prefer, including the individual saving plan which are flexible.

The Comms Officer noted that RBA is supporting the Industry to develop unique pension products for the informal sector to have flexible contributions because of irregular incomes.

Courtesy; KNA