Kenya. Pension burden as State to spend Sh104bn on retirees in two years
Kenya will spend Sh104 billion in the next two years to pay retired civil servants, raising the red flag on the government’s ability to support its retiring workers.
The dilemma, however, remains how much State workers should set aside for their sunset days in an environment of increasing cost of living thanks to the tax burden.
And the increasing number of pensioners and government’s struggles to support them in their old age is a major cause for concern, according to Enwealth chief executive Simon Wafubwa.
“This is a worrying trend considering the level of national debt against national savings. We need to prioritise intervention measures including operationalisation of a contributory pension scheme for civil servants, which has failed to take-off since 2012,” Wafubwa told the Sunday Nation.
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