Only 20 percent of Kenyan workers save for retirement in registered schemes. The remaining 80 percent of workers who are mainly in the juakali sector do not belong to any pension group. The Retirement Benefits Authority has announced plans to attract more people, particularly in the informal sector into the pensions industry.
The government agency aims to increase the percentage of workers who sign up in pension plans to 30 percent by 2024. RBA’s Chief Executive Nzomo Mutuku said that his organization is working with mobile service providers to develop products suitable for the informal sector workers.
According to the Kenya National Bureau of Statistics, the informal sector has an estimated 14.8 million workers who make up over 80 percent of the working population in the country. These people lack access to most pension plans which are designed for employees in the formal industry.
Speaking during the launch of RBA’s 2019-2024 strategic plan, the CEO said they hope to double the value of assets saved in pension schemes from KSh1.2 trillion to KSh2.4 trillion in the next five years.