Kenyans in the informal sector have been urged to join pension schemes and commence saving for retirement to secure a good future once they exit their jobs.
According to statistics by the Retirement Benefits Authority (RBA) despite the total assets under management amounting to over Sh1.7 trillion as of December 2023, only 26 percent of the labour force is actively saving for retirement.
Speaking during the official opening of the five-day Huduma clinic in Mombasa meant to educate residents on the critical importance of saving for retirement, RBA Chief Executive Officer (CEO) Charles Machira said that the public needs to be informed that formal employment is not a prerequisite for pension scheme enrollment and there is importance in saving and planning for retirement.
Machira also urged stakeholders in the pension industry, including the media, to reverse the trend of poor saving for retirement by enlightening Kenyans on the importance of retirement savings and the various options available.
He noted that sensitization through the Huduma clinic plays a profound significance particularly when considering the alarming statistics indicating that approximately 7 out of 10 Kenyans face the risk of falling into poverty upon retirement due to inadequate savings.
“The initiative targets informal sector workers, with the goal of enlightening them on the various avenues available for retirement savings. Additionally, for those already engaged in the sector, we continue to provide free retirement preparation training for scheme members nationwide,” he said.
He added that RBA is closely collaborating with other stakeholders, such as the individual pension plans represented, to raise awareness among all Kenyans regarding the importance of retirement savings.
He said instances of retirees encountering challenges in accessing their pension benefits have been noted over the years and promised to do a follow up and ensure every retiree gets their benefits 30 days after the day of retirement, as prescribed by the law.
Huduma Centre Chief Executive Officer Mugambi Njeru said Huduma Centres were ready to partner with RBA and bring services closer to the people, ensuring accessibility and inclusivity for all.
Mombasa Deputy County Commissioner Ronald Mwiwawi said the initiative will offer a prime opportunity for local residents to learn on how to start saving and secure their future.
Mwiwawi said the government is steadfast towards ensuring citizens do not retire into poverty, and is promoting a culture of saving for retirement as a crucial step in achieving the goal.
He commended the Huduma clinic initiative for serving as a one-stop shop for all pension related matters, streamlining processes, and enhancing efficiency for the benefit of all stakeholders.
“It’s crucial to note that anyone earning an income can enroll 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,” he said.
By Chari Suche
