NSSF courts informal sector workers with M-Pesa contributions


NSSF board of trustees chairman Julius Karangi on March 4, 2019. FILE PHOTO | NMG

National Social Security Fund (NSSF) has launched a product that will see workers save for retirement with at least Sh200 using Safaricom’s M-Pesa platform.

The State-owned fund said on Monday that the service will enable workers to conveniently make contributions and track their savings via mini-statements without having to visit NSSF offices.

NSSF board of trustees chairman Julius Karangi said the cashless platform will help savers, especially those with irregular flow of income secure their retirement.

“The platform is a fast and easy way to increase contributions through mobile phone and secure retirement.

"Kenya is among countries with highest dependency ratios and old age poverty is also rising,” he said.
"In the Horn of Africa, Kenyans are contributing less per month for retirement. This speaks to poverty and high dependency ratios in retirement.”

Saving culture

NSSF hopes that the platform will improve saving culture and also help the fund, which was founded in 1965, reach three million contributors from the current 2.7 million.

Payments through the mobile phone have been on the rise in Kenya.

Safaricom #ticker:SCOM chief enterprise business officer Rita Okuthe said the platform will enable over 14 million Kenyans working in informal sector to start contributing based on the amount and timing of their earnings.

“These employees deserve the same level of service like those in formal employment. We want to simplify the customer journey by allowing contributors to pay via phone. As a contributor, you can query how much you have saved,” said Ms Okuthe.

Speaking at the same function, head of supervision at Retirement Benefits Authority Charles Macharia called on workers to increase their level of savings if they are to retire with adequate resources.