Only 26% of people in labour market saving for retirement

The Retirement and Benefits Authority has expressed concern over the low the number of Kenyans saving for retirement.

RBA’s CEO Charles Machira said there is need for concerted efforts by government and non state agencies to sensitise people on need for saving.

He spoke during a RBA service week at Garissa Huduma Centre.

“When you look at statistics it is clear that in every 10 Kenyans seven will live in poverty because our appreciation for generally saving is not ideal. The number of people saving for retirement is barely 26 per cent of the total labour force,”Machira said.

He urged Kenyans in the formal and informal sector to join pension schemes and save to secure their future.

“We have assets worth more than Sh1.7 trillion but the people who own them are very few because they are either in the civil service or the formal sector,” Machira said.

“There is a huge population of 85 per cent of our labour force in the informal sector and we must put concerted efforts to help them save for their pension.”

Out of more than Sh50 billion lent out by hustler fund, more than Sh2 billion has gone to savings.

The CEO warned employers who are remitting their employee's pensions to their respective schemes.

He said the authority will take action against perpetrators of illegalities and secure members' benefits.

“We have a responsibility to ensure that there is hygiene in the retirement benefits and pension funds are properly managed to help members go home with commensurable benefits upon retirement," Machira said.

“These dues must also be paid at the expected time.” 

Huduma Kenya acting CEO Mugambi Njeru said the Huduma Centres will be partner with agencies such as RBA to ensure easy access of pensions.

Hassan Noor, a retiree from the Youth Enterprise Fund urged employed individuals to prepare their pension documents early in order to receive their pensions in time.

Noor said starting the process after exiting service consumes a lot of time and money.

This, he said, is likely lead to delay in disbursement of money.