Government and Policy

We Need To Develop A Savings Culture To Grow – David Koross

BY Juma · January 17, 2024 06:01 am

KEY POINTS

NSSF deductions are not taxes. This is the money that you are giving us to invest for you and give it back to you with interest. Kenyans shouldn't view this as a tax. This is the only way to secure your financial future; savings.

KEY TAKEAWAYS

The law directs that baseline salaries for subsequent years be 7,000 shillings for the second year of implementation, 8,000 shillings for the third year, and 9,000 shillings for the fourth year, and the gazetted minimum monthly wage starting the fifth year.

Kenya’s National Social Security Fund (NSSF) Managing Trustee, Mr. David Koross, has urged Kenyans to develop a savings culture to be at the same level or beat both Tanzanians and Ugandans whose savings rate leaves us dangling behind.

Currently, Kenya’s savings rate is average at 12 percent compared to that in Uganda and Tanzania which is above 20 percent. This has seen millions of Kenyans enter into retirement with nothing to fall back on as a source of revenue, hence increased depressions.

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Speaking on Citizen TV, together with other Board of Trustees, Mr. Koross called on Kenyans to take advantage of the NSSF enhanced rates and save with the Fund for their financial future, not just for them, but their families too.

“NSSF deductions are not taxes. This is the money that you are giving us to invest for you and give it back to you with interest. Kenyans shouldn’t view this as a tax. This is the only way to secure your financial future; savings,” he said.

Mr. Koross’ sentiments came at a time there was a conversation online concerning new rates that had been announced by the NSSF with the majority being of the opinion that the deductions will mutilate their payslips further.

“On the new rates, we are not doing anything outside the law. The law directs that baseline salaries for subsequent years be 7,000 shillings for the second year of implementation, 8,000 shillings for the third year, and 9,000 shillings for the fourth year, and the gazetted minimum monthly wage starting the fifth year… The lower earnings limit and the upper earnings limit shall, for the first four years after commencement date, be by the table contained in the schedule,” he said.

At the same time, he called on Kenyans to take advantage of NSSF’s open doors at any time of the day, Monday to Friday, including lunch hours, and get unlimited services. “Our offices are always busy during lunch hours. We never stop working in serving our members.”

On NSSF claims, the Managing Trustee said that the Fund is working towards ensuring that members get their claims within a day.

About Juma

Juma is an enthusiastic journalist who believes that journalism has power to change the world either negatively or positively depending on how one uses it.(020) 528 0222 or Email: info@sokodirectory.com