Civil servants could get a monthly pension contribution of a maximum of Sh3,000 a year to the National Social Security Fund (NSSF) from the government towards their pension in new proposals by President William Ruto aimed at encouraging Kenyans to save more in the fund.
Dr Ruto on Thursday said the government will contribute Sh1 against every Sh2 that an employee saves in the fund but capped the saving threshold at Sh6,000 a year to ease the pension burden to the government.
Workers contribute at least Sh200 to NSSF month to month, which is typically paired by an equivalent commitment from their managers, meaning a limit of Sh2,400 every year.
Dr Ruto has griped that reserve funds into the NSSF are deficient to help retired folks in advanced age and needs to update the benefits framework to support public investment funds.
"There is no resigned Kenyan today who is living on their NSSF retirement benefits. The small current commitment of Sh200 a month amounts to Sh72,000 north of 30 years. There is no pace of return on earth that can develop this into a sufficient benefits," said Dr Ruto.
The President said that the low pace of reserve funds meaningfully affects different areas, including land fracture, which has added to food shortage as Kenyans scramble to purchase land as their go-to venture apparatuses.
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