Payment of the National Social Security funds (NSSF) has been made easier! Members will now be able to make cashless contribution after NSSF partnering with Safaricom to enable the service.
Under the new system, members can now remit their contributions and other payments to NSSF through the M-PESA PayBill 333300.
NSSF board of trustee’s chairman Julius Karangi said out of Kenya’s workforce, only less than 20 per cent are registered to a pension scheme, which is a low figure leading to high independent rate after retirement.
He said low contribution leads to post-retirement issues including poverty and high dependency ratio on relatives.
He spoke on Monday during the signing of the partnership at NSSF head office in Upper Hill.
“Kenya has the highest level of old age independence, which is so shaming. I am appealing to those who have not joined any form of a pension fund to join NSSF or any form of pension fund. I also appeal to employers to use all means to ensure workers even those in informal sectors have joined a pension scheme,” Karangi said.
Karangi said the high poverty ratio in the country is due to the low contribution from members.
“The level of retirement savings in Kenya is extremely low. In the horn of Africa, Kenyans are contributing the least amount per month towards retirement,” said Karangi.
In January 2019, Labour Cabinet Secretary Ukur Yatani reappointed Cotu boss Francis Atwoli and Federation of Kenya Employees executive director Jacqueline Mugo back to the NSSF board.