KISUMU, Kenya, Jul 12 – Tailor-made retirement saving schemes have been cited as central to expanding pension uptake among informal sector workers which remains significantly low.
Chris Ogetii, Chief Operating Officer at Zamara, a local financial services firm offering pension administration services, says demystifying pension schemes to workers in the informal sector will encourage absorption.
He says most Kenyans have not embraced pension due to lack of clear messages.
“The financial information that we provide, some of it is provided in a manner that does not make it easy for the users to consume,” he says.
Ogetii says the pension sector in the country could play a much more significant role particularly in the areas of financing the country’s development needs.
“If you look at the employment today, 80 to 85 percent of income-earning Kenyans are not in the formal sector, and we believe that they also deserve their right like any other Kenyan to prepare for their retirement” the CEO whose firm administers assets worth Sh275 billion says.
Ogetii announced that next month they are coming up with a pension retirement plan that is designed to assist individuals and groups.
He says Zamara will next month unveil a retirement savings scheme designed for the informal sectors which will build up retirement capital in a tax efficient way.
He says the new plan will be on a digital platform making it available to a wide range of Kenyans while offering quick service.
“Given that it is a technologically driven platform, it will provide broader reach to this segment,” he says noting the pension industry in the country has witnessed phenomenal growth in the last 15 years.
Ogetii was speaking in Kisumu on Thursday during a regional seminar that brought together pension fund trustees, investment professionals and regulators.