19 June 2014

Kenya: State to Widen Social Security Benefits Net

THE government is looking at the possibility of automatically enrolling citizens over 18 years to a pension fund to increase coverage of retirement benefits scheme.

Without giving details on how this will work out, Retirement Benefits Authority boss Edward Odundo said coverage of pension schemes remains low at between 18 to 20 per cent hence the need to introduce some mandatory safety net to cover both the employed and unemployed.

He added that RBA is exploring ways it can make every person have a retirement saving plan including those in the informal sector.

"We will soon introduce an automatic enrollment whereby immediately you reach age 18 you are put in a pension plan whether it is NSSF (National Social Security Fund) or a private one," said Odundo yesterday during the launch of new retirement benefit plans dubbed 'Boresha Maisha' by CFC Life Group.

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