RBA boss decries low number of Kenyans saving for retirement

By Peter Ochieng

Retirement Benefits Authority (RBA) boss Charles Machira has decried the low number of Kenyans saving for retirement.

RBA’s Chief Executive Officer (CEO) says only 26 per cent of the country’s labour force, which translates to barely four million people, is saving for retirement.

“That means 76 per cent of the country’s labour force is not saving,” said the CEO.

Addressing the press in Kisumu on Tuesday during the opening of the four-day Huduma outreach activity, Machira said that as it is now, most Kenyans saving for retirement are those in formal employment.

To this end, the CEO noted that those in informal employment, such as the Jua Kali sector can also save for better livelihoods when they are no longer working.

He gave an example of the Hustler Fund, where figures show that 21 million Kenyans have borrowed money through the platform, introduced by President William Ruto’s Kenya Kwanza administration a year ago.

“In order to access that money, one has to have a national Identification (ID). That is to say that anyone with an ID can save for retirement,” he added.

The outreach program in Kisumu, a collaboration between RBA and Huduma Kenya ends on Friday, with bringing services closer to the people, getting feedback and assuring locals of the hygiene in the sector identified as the key aims.

With all documentation in place, Machira said people retiring should be able to get their benefits within a month, or utmost in three months’ time.

The CEO initially paid a courtesy call to Kisumu County Commissioner Hussein Alasow Hussein and Nyanza Regional Commissioner (RC) Flora Mworoa.

The two National Government Administration Officers (NGAOs), challenged RBA to continuously sensitize those approaching retirement age on the need to psychologically prepare for retirement.

Mahira said, in collaboration with Hussein and Mworoa, they will mount a two-day sensitization forum for employees above 50 years in the region, before Christmas.

RBA oversights or supervises 1, 076 retirement schemes, with an asset turnover of Sh1.7 trillion.