Body mulls forced kitty for pension
Pension trustees and administrators are pushing for a mandatory universal pension scheme for all Kenyans as they seek to recruit more members to stir the sector.
With statistics showing Kenya is grappling with a poor pension savings culture with only 25 per cent of employed Kenyans embracing pension schemes, stakeholders want the government to step in and make such contributions mandatory.
Speaking during a three-day international forum under the aegis of the Association of Pension Trustees and Administrators of Kenya in Mombasa yesterday, its president Hosea Kili said the lobby is drafting requisite regulations which will be presented to Parliament.
The group hopes the move will compel every Kenyan to commit and be entitled to a pension and other benefits after retirement.
Copying health sector
Like the Universal Health Coverage (UHC) which is enshrined in law, the association wants a new law to also compel all Kenyans contribute through pension schemes for a stable future, after retirement.
“We are currently pushing for the government to do to the pension sector what it has done to the health sector, you know very well that the government has pushed a law to make savings for universal health to be mandatory everybody is going to contribute by law, we are pushing the same agenda for Pension,” said Kili.
Kili said the industry has made milestones by ensuring many retirement schemes and trustees thrive and the country has managed to have 6,000 trustees that have various products.
“And if governments intervene and introduce a mandatory saving arrangement then we will hit 100 per cent. The numbers are not very promising because employers are yet to register their employees, about 22 per cent of Kenyans who are employed are on Pension.
Job cuts on pandemic
Despite a dip owing to the withdrawal of members’ contributions during the pandemic when job cuts soared, the sector expects a 35 per cent growth in the next five years banking on key reforms it hopes to leverage and spur the multi-billion sector.
“For now without that law, we are encouraging the public to save money in our social security schemes, and this will spur the sector and the membership will grow not only in investments to 35 per cent in the next five years, currently the rate is above 20 per cent and I can project that it will rise and if the government allows happening,” Kili said.
