Kenya. RBA targets Sh2.4trn via mobile phones
The Retirement Benefits Authority (RBA) is counting on the informal sector to more than double pension savings to Sh2.4 trillion in the next five years, riding on mobile phone-based products.
Chief executive Nzomo Mutuku on Tuesday said roping in the sector will help grow pension coverage from the current 20 percent to at least 30 percent by 2024.
“Informal sector cannot use payroll system to remit savings, so we want to have mobile phone-based platforms where one can make contributions. And this has to be flexible so that when one gets income, they are able to contribute,” said Mr Mutuku.
He spoke in Nairobi during the launch of RBA 2019-2024 strategic plan premised on improving access, efficiency and stability of pension contributions in the country.
Mr Mutuku said more pension schemes will be required to roll out products similar to that of National Social Security Fund that allows M-Pesa contributions of at least Sh200.
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