Ruto: Government will match a shilling for every two a Kenyan saves on NSSF
President William Ruto has announced plans to match one shilling for every two shillings a Kenyan saves through the National Social Security Fund as he aims to have a better savings plan for Kenyans.
During a joint sitting of parliament, Ruto stated that the country’s current social security system only provided for people in formal employment, omitting the vast majority of unemployed Kenyans.
“We intend to overhaul our social security infrastructure to make it more inclusive. To encourage those excluded to save, I will be proposing a national savings drive. For every Ksh 2 saved in the scheme upto a maximum of Ksh 6,000 a year, the government will contribute KSh 1,” Ruto said.
Ruto claimed that the current employee payments of KSh 200 per month was impractical for a retirement plan.
“The meager current contribution of Ksh 200 a month adds up to Ksh 72,000 in 30 years. There is no rate of return that can grow this into an adequate pension,” Ruto added.
President Ruto previously stated that the administration will evaluate the monthly contribution to the NSSF so that it is proportional to one’s earnings rather than a flat cost.
Ruto stated that he inherited a failing economy and that it was time for the country to act wisely in order to establish a stronger savings strategy that would allow it to slow down on international lending.
“We cannot continue to borrow from the savings of others. We need to build our country with our own savings. Let us borrow from our own savings so that we can give interest to our own lenders,’’ he said.