Machakos: Seven out of ten Kenyans are facing financial hardships after retirement due to the absence of a savings plan, according to CEO Retirement Benefits Authority (RBA), Charles Mathira. Mathira highlighted that the lack of a structured retirement savings plan is leaving a significant portion of the population vulnerable in their post-working years.
According to Kenya News Agency, Mathira revealed that only 26% of Kenyan workers were saving for retirement as of December last year. The RBA aims to increase this figure to 34% by 2029 through targeted awareness campaigns. Mathira emphasized that individuals in the informal sector are particularly affected, as many do not prioritize retirement savings.
In a speech delivered by Tom Kiptanui, Director of Marketing Conduct at RBA, during a three-day RBA clinic at the Machakos Huduma Centre, it was noted that the informal sector workers often view retirement savings as unattainable. Mathira urged residents to start saving early, regardless of income level, by taking advantage of simple pension plans and individual pension schemes that allow minimal daily deposits.
Director Kiptanui, speaking on behalf of the RBA CEO, expressed concern over the low percentage of Kenyans saving for retirement, which indicates a widespread lack of retirement planning. He outlined plans to reach more Kenyans through partnerships, such as the collaboration with Huduma Centre in Machakos, and highlighted the importance of engaging with residents directly.
Kiptanui also addressed employers, urging them to implement pension schemes for their employees to ensure financial security upon retirement. He pointed out the lack of information as a barrier to retirement savings and called for a cultural shift towards embracing retirement savings as a necessity.
John Obaka Otieno, representing the CEO of Huduma, praised the partnership with RBA for bringing services closer to the people. He encouraged individuals from all sectors, including the informal sector and youth, to establish retirement plans to ensure a comfortable retirement.
