Haba Haba na NSSF, Helping the Informal Sector Save for Retirement

By Jane Muia / Published January 20, 2023 | 9:25 am

KEY POINTS

Haba Haba Na NSSF provides a holistic approach to Social Protection by providing a retirement benefit, social insurance cover, permanent disability cover, funeral expenses cover, and a sickness benefit cover. It is a handy package for people in the informal sector who are a critical mass that cannot be ignored.

KEY TAKEAWAYS

Haba Haba na NSSF is an informal sector product that aims to empower small and medium enterprises. The package offers a convenient way of addressing the needs of prospective, present, and future NSSF members in the informal sector while increasing coverage of Social Security for all Kenyans.

The current retirement age in Kenya stands at 60 years, but unfortunately, most people in the informal sector get to that age without a retirement package.

This is particularly unfortunate given that Kenya’s informal sector represents an integral part of the economy while playing a significant role in employment creation, production, and income generation.

The Kenya National Bureau of Statistics (KNBS) Economic Survey 2021 noted that informal sector employment is estimated to have contracted 14.5 million jobs and accounted for 83.4 percent of the total employment outside of small-scale agriculture during the review period.

The situation can be explained by the massive job losses experienced during the pandemic as more households and individuals joined informal entrepreneurship.

Kenya’s vision 2030 targets the provision of high quality of life for all citizens – and this can be achieved through stellar social security measures. Luckily, there is no shortage of such services, and a good example is the National Social Security Fund (NSSF), which allows everyone to save and plan for their future for a happy retirement.

Sadly, most people think NSSF is only for those employed by the government or those in the formal sector. They feel that informal workers are excluded from social security benefits and the protection afforded by formal labor contracts. In 2019, however, NSSF introduced the Haba Haba product to ensure that everyone across the country is covered.

The product is an informal sector product that aims to empower small and medium enterprises. The package offers a convenient way of addressing the needs of prospective, present, and future NSSF members in the informal sector while increasing coverage of Social Security for all Kenyans.

This is part of the reason why NSSF decided to work with Organized groups to reach a wider audience effectively. Haba Haba gives members in the informal sector a chance to save a minimum of 25 shillings a day with the option of withdrawing 50 percent of their contribution after consistent contribution for five years.

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Haba Haba na NSSF is available for everyone in the informal sector- from mama mboga to kiosk sellers, offering several benefits to all registered members.

Making contributions to members’ savings is very easy as all payments can be done through Mpesa. Members can access their statements without having to visit the branch, all what they need is just access to a mobile phone. It is the real deal for anyone committed to securing their future since it helps navigate tricky situations and helps you meet financial obligations.

Registration for Haba Haba na NSSF is very easy. You can get started with the USSD code *303#.

This USSD code will allow you to:

Register as an NSSF member
Register for the informal sector product (Haba Haba)
Check your NSSF statement
Make contributions and top-up your savings
Follow up on Benefit claims
Pay Tenant Purchase Scheme

Members can use the Haba Haba *303# code to access different products. For example, through the NSSF partnership with members of the Boda Boda Association of Kenya, operators can use the code to access pension, medical cover, and welfare at 60 shillings per day.

That said, Haba Haba Na NSSF provides a holistic approach to Social Protection by providing a retirement benefit, social insurance cover, permanent disability cover, funeral expenses cover, and a sickness benefit cover. It is a handy package for people in the informal sector who are a critical mass that cannot be ignored.