Over 86 percent of Kenyans do not have a pension scheme, Devolution Cabinet Secretary Eugene Wamalwa has revealed.
According to CS Wamalwa, anxiety over costs of defined benefits coupled with employee retirement plans have mushroomed while people are living longer and investment market conditions remain volatile.
“The Government of Kenya remains cognizant of the fact that we are working through what is arguably the biggest change in the retirement benefits industry.
“The achievement of universal and affordable access to social security, reduction of income insecurity and reduction of the unequal access to opportunities, has been slow due to a number of factors we are currently working on,” Wamalwa said.
The CS indicated effective social security policies would contribute to improving the environment for economic growth in Kenya.
“It would be erroneous to think that social security is a luxury to be afforded only when growth has taken place or when countries have reached a certain level of per capita income,” he said.
The Devolution boss made the remarks when he closed the 15th Annual General Meeting for the County Pension Fund (CPF) shareholders at Enashipai resort in Naivasha over the weekend.
Wamalwa further said the State was committed to working with all stakeholders including the Council of Governors (CoG) to ensure all employees and State officers were enabled to save for retirement.
Wamalwa termed pension funds as the best way to achieve development saying they were a key enable implemented of the Government’s Big Four agenda.
“Tanzania’s state-run pension fund invested USD135m to construct a six-lane toll bridge as part of investing in infrastructure hence retirement benefits funds are preferable because they tend to be available for the long-term,” he said.