The Retirement Benefits Authority (RBA) on Tuesday launched a new Strategic Plan 2019 -2024, dubbed the ‘Integrating the Informal Sector- Key to Driving Pension Coverage’.
Among the key target goals that the new strategic plan will seek to deliver is the realization of 30 percent pension coverage among Kenyans, up from 20 percent, and an asset base of 2.4 Trillion Shillings by 2024.
“As RBA we are committed to promote savings for retirement in Kenya through safeguarding, supervising and facilitating the development of the retirement benefits sector. This new strategic plan will help us create an inclusive, secure and growing retirement benefits sector,” said Nzomo Mutuku,CEO RBA.
He further acknowledges of the main reasons for the low uptake of pension scheme among Kenyans is that the pension services are designed for workers in the formal workplace who are less than 20 percent of the working population.
“We must take into consideration that 80 percent of Kenyan employees work in the informal sector where they lack proper channels for contributing to retirement schemes. By enhancing Pension Coverage in the Informal Sector we shall be reaching out to those Kenyans who are outside the pension scheme.
This will be realized by enhancing need-based outreach programmes, promoting the development of pension products that specifically target the informal sector. The Authority also recognizes that the general awareness among the Kenyan public of the need to save for retirement is already high and will be developing programmes to translate this awareness into actual enrolment in retirement benefits arrangements.”
To further enhance the implementation of its strategy, RBA also launched a mobile app, which will help with including members of the informal sector in pension schemes.
The app will manage complaints: Whistle blowing, create a platform for frequently asked questions, enable stakeholders to track performance of pension schemes as well as allow a plan for making online payments.