This archive report was first published on 26 June 2021.
As Kenya's population ages, industry stakeholders are sounding the alarm on the need for pension sector innovation and expansion.
According to Zamara Group Chief Executive Sundeep Raichura, there is an urgent need to extend pension coverage to the informal sector, which currently accounts for 85% of the workforce that is not covered.
Speaking at a conference in Mombasa, Raichura emphasized the importance of making pension contributions compulsory and increasing tax breaks for the pensions sector.
"An informal sector worker has a higher need than one in the formal sector to be protected against loss of income-earning capacity in old age," Raichura said.
Retirement Benefits Authority Chief Executive Nzomo Mutuku noted that while the pensions sector was hard-hit by the Covid-19 pandemic, it still registered growth, crossing the Sh1.4 trillion mark in assets.
Mutuku urged pension fund trustees and providers to consider innovating new products to enable Kenyans to benefit from the favourable regulations implemented by the industry regulator.
Published on June 26, 2021.
