• RBA has embarked on a campaign targeting people in the informal sector to join pension schemes
• RBA targets to have about 600,000 members join the schemes yearly
About 80 per cent of Kenyan workers are not covered by pension schemes and are likely to retire into poverty if they do not have a constant income plan.
The Retirement Benefits Authority says only 20 per cent of the labour force is registered and saving with a pension scheme.
RBA head of corporate communication attributed the low number to lack of information .
“Majority of the remaining 80 per cent are in the informal sector. These are traders who are not in the formal employment bracket and who are self-employed like matatu and boda boda operators and market traders,” he said.
“But RBA has registered close to 36 individual pension plans that anybody whether employed or not, provided is earning an income, can join, take a plan and start saving towards retirement.”
Ratemo spoke in Karatina town, Nyeri county, on Thursday during a sensitisation forum for informal sector workers.
“Now the government is very keen on small and medium enterprises and we are here to ensure that as they make an income, they can save a little in pension schemes so that they can also benefit from the tax rebates offered by government,” he said.
RBA's five-year strategic plan 2019-2024 targets to increase pension coverage from the current 20 per cent to at least 30 per cent.