The National Social Security Fund (NSSF) introduced a mobile-based retirement savings platform enabling workers to contribute as little as Sh200 through Safaricom’s M-Pesa system, targeting informal sector employees with irregular incomes.
Announced on March 4, 2019, the initiative allows users to make contributions and access mini-statements via mobile phones without visiting NSSF offices, according to the state-owned agency. NSSF board chairman Julius Karangi emphasized that the cashless system addresses rising old-age poverty and low retirement savings in Kenya, which has one of the highest dependency ratios in the Horn of Africa.
"Kenya’s aging population and limited retirement savings necessitate innovative solutions," Karangi stated. "This platform ensures even those with fluctuating incomes can secure their futures." The fund, established in 1965, aims to expand its contributor base from 2.7 million to three million through the service.
Safaricom’s Rita Okuthe highlighted that the tool empowers 14 million informal workers to save based on their earnings, offering parity with formal sector benefits. "Contributors can track savings instantly, simplifying the retirement planning process," she said.
Retirement Benefits Authority’s Charles Macharia urged increased savings rates to ensure adequate retirement resources, as mobile transactions continue to grow in Kenya.
