NSSF Holds The 6Th AGM With Calls On Kenyans To Save More

The Board of Trustees and Management, as well as members of the National Social Security Fund (NSSF), held their 6th Annual General Meeting (AGM) with calls on Kenyans and other stakeholders to save more and enhance the savings culture across the country.

Presided over by the Outgoing Cabinet Secretary, Ministry of Labor, Hon. Simon K. Chelugui, the function was held amid the ongoing national discussions around Kenya’s savings culture and whether changes need to be put in place to catapult Kenya into a savings leader in the region.

“This conversation is quite timely and comes at a time when we as a country are facing various challenges regarding retirement. This year, we have had nationwide talks regarding several issues, but far from the politics, the case of saving takes the utmost precedence. Of course, it is not without cause because it provides a foundation of retirement protection for people at all earning levels. It encourages private pensions and personal savings among the citizens,” said the CS for Labor Simon Chelugui.

The sentiments by the CS come at a time, according to the World Bank and Trading Economics reports, Kenya’s saving rate is 12 percent, way below Africa’s average of 17 percent. The inadequacy of social security coverage and low savings for workers has reduced the opportunity for workers to enjoy decent work and retire with dignity.

“Kenyans are now living longer. Today, most people can expect to live beyond the age of 60 as life expectancy has increased. In all honesty, the KES 200 that most people contribute monthly for their retirement savings is insignificant and unsustainable for a comfortable life after retirement. By calculation, the eventual benefits are way below the average absolute poverty average of Ksh. 4624 per adult per month. This sorry undesirable state of affairs needs immediate intervention,” added the CS.

Speaking during the function, NSSF Chairman General (Rtd) Dr. Julius Karangi, outlined the resilience growth of the Fund despite facing a myriad of challenges during the 2021/2022 fiscal year. He said despite the challenges, the growth of the Fund has remained at 5 percent for the second consecutive year on the backdrop of global uncertainties, the aftermath of the Covid-19 pandemic, and the just concluded general elections in the country.

“Despite the tough economic environment and challenging operating conditions, the Fund has continuously evolved to remain relevant to the ever-changing times. However, what remains constant is our commitment to our core values as a Fund to you, our stakeholders, to always do our best to realize growth and sustainable progress. It is also important to note that on one hand, we had the issue of tough economic times and inconsistent weather patterns, and on the other hand, the clarion call to improve our saving culture is a reality and is getting louder by the day,” said General Karangi.