• About
  • Advertise
  • Privacy & Policy
  • Contact
Kenyan Business Feed
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business
No Result
View All Result
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business
No Result
View All Result
Kenyan Business Feed
No Result
View All Result
Home News

RBA targets Sh2.4trn via mobile phones

Kenyan Business Feed by Kenyan Business Feed
Share on FacebookShare on Twitter

[ad_1]

PATRICK ODENYO

By PATRICK ODENYO
More by this Author

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.

“We want to make it easier for them to join schemes without having to fill forms or visit offices. We want to have platforms for choosing schemes, joining, making contributions and receiving benefits,” he said.

The market already has Mbao Pension Scheme started in 2009 as an individual pension plan majorly for the informal sector.

RBA targets at least 600,000 new pension contributors every year by reaching out to segmented groups and also diversifying investment portfolio.

Pension coverage has been growing from 16.8 percent in 2013 to the current 20 percent, but Treasury secretary Henry Rotich said this is not sufficient relative to the size of Kenya’s gross domestic product (GDP).

“We need to raise our savings ratio over 27 percent of GDP and that will require pension coverage to also rise significantly. Innovative schemes such as Mbao pension scheme will significantly increase access,” he said.

Assets of pension funds grew by 21.1 percent from Sh963.11 billion as at June 2017 to Sh1.17 billion as at June last year, nearly 14 percent of Kenya’s GDP.

RBA forecasts Sh5 billion income in the next five years, out of which Sh1.5 billion will be used to implement the strategic plan.



[ad_2]

Source link


Kenyan Business Feed is the top Kenyan Business Blog. We share news from Kenya and across the region. To contact us with any alert, please email us to [email protected]
Kenyan Business Feed

Kenyan Business Feed

Recommended.

EDITORIAL: Instil prudent spending

May 23, 2019

Local fish earnings rise to Sh24bn on volumes

April 30, 2019

Subscribe.

Trending.

Tourism CS Rebecca Miano announces new measures at Maasai Mara, including ranger deployments, clearer signage, and public education following a viral tourist incident.

Government Tightens Maasai Mara Rules After Viral Tourist Clip

August 26, 2025
Safaricom launches B Live, a first of its kind service allowing customers to buy internet access by the hour, offering flexible one hour three hour and six hour bundles for students creators and professionals.

Safaricom Expands Digital Options with Innovative B Live Product That Adapts to Different Usage Habits

August 21, 2025

Co-op Bank Empowers Over 249,000 Kenyan MSMEs with Loans and Training

August 21, 2025
PLP and Safaricom Graduate 300 Youth in Push for Digital Talent Development Across Kenya

PLP and Safaricom Graduate 300 Youth to Boost Kenya’s Digital Talent Pipeline

June 23, 2025

Co-op Bank Branches in Nairobi and Their Contacts

March 3, 2025
Kenyan Business Feed

We focus on news, analysis, and reports about Kenyan business, covering sectors like agriculture, finance, tourism, and technology.

Categories

  • African
  • Agribusiness
  • Courts
  • Education
  • Health
  • Hospitality
  • Manufacturing
  • NetWorths
  • News
  • Reports & Analysis
  • World Business

Popular News

  • First look at the prison where El Chapo may live for the rest of his life

    First look at the prison where El Chapo may live for the rest of his life

    2157 shares
    Share 1040 Tweet 466
  • Sameer Africa CEO Sacked

    1804 shares
    Share 750 Tweet 439

Recent News

Tourism CS Rebecca Miano announces new measures at Maasai Mara, including ranger deployments, clearer signage, and public education following a viral tourist incident.

Government Tightens Maasai Mara Rules After Viral Tourist Clip

August 26, 2025

Co-op Bank Empowers Over 249,000 Kenyan MSMEs with Loans and Training

August 21, 2025
  • Home
  • African
  • News
  • Education
  • Health
  • Reports & Analysis
  • World Business

© 2025 KBF

No Result
View All Result
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business

© 2025 KBF