Why You Should Save For Retirement

In a bid to motivate members of the public on how to save for retirement, the Retirement Benefits Authority (RBA) has opened up a mobile clinic at the Mombasa Huduma Centre one-stop shop to decentralize the provision of their services and respond to the public on how to save for retirement.

At the RBA desk at the Mombasa Huduma center, customers will be assisted by professionals on any inquiries and questions about pension schemes and saving plans.

While addressing the media during the launch of the plan, the RBA Chief Manager Ann Mugo said the Authority also has an official website, where Kenyans can get all the services online in any part of the country.

Mugo added that they are also registering and licensing any new companies interested in developing pension schemes.

“We urge the local residents to visit Huduma center to inquire on services RBA offers and the benefits of being a member. Our main aim is to promote financial literacy, the culture of saving and planning to Kenyans,” she said.

Mugo noted that the authority has set up a five-day awareness program in Mombasa County to educate people on the significance of being a member of a registered retirement benefit scheme.

“We have come up with a team, which will be at the desks in Huduma centers in the country ready to serve customers who want to access retirement services. We are currently intending to launch these mobile clinics at the eight regional Huduma centers and later on reach out to the rest of the centers countrywide,” added Mugo.

She encouraged all Kenyans to save, whether they are in formal employment or self-employed, adding that most of the schemes that are set up by the employers usually deduct 5 -10 % of basic salary.

In a case of self-employment, Mugo said that one can go to any retirement scheme company and the minimum they expect you to contribute is Sh50 per month.

“Some of these pension schemes have made sure that even a common citizen can save for retirement. We therefore urge locals not to shun away from these plans,” she said.

According to Mugo, Kenya has 158 pension schemes set up by employers and the schemes have accumulated as at December 2021. A total of Sh1.5 trillion is in collection, however, the authority plans to increase the amount to Sh2.4 trillion by June 2024.

For Mombasa County being the first one to receive the mobile clinic, the Huduma Kenya Secretariat Chief Executive Officer (CEO) James Buyekane promised to provide convenient services to all citizens.