TUKO.co.ke sat down with the Chief Executive Officer of the Retirement Benefits Authority (RBA) for an interview and received shocking statistics about the saving habits of Kenyans.
Over 80% of Kenyans will end up in old age poverty for failing to save their finances by the time they will be retiring. This is because they believe that retirement is far away and most people bank their futures on financial help from their children or relatives.
The National Treasury is spearheading the rolling out of a merged financial services regulator as recommended in the Report of the Presidential Taskforce on Parastatal Reforms (October 2013), to be referred to as the Financial Services Authority (FSA). The FSA is proposed to be a merger of the four regulators in the sector namely the Retirement Benefits Authority (RBA), the Insurance Regulatory Authority (IRA), the Capital Markets Authority (CMA) and the Sacco Societies Regulatory Authority (SASRA). It is notable that the four regulators proposed for merger already have a working Memorandum of Understanding allowing them to coordinate their regulatory roles.
Retirement Benefits Authority has activated the “Kulegalega” pension awareness campaign that compels Kenyans to confront themselves and come to a realization that they will need a back – up plan after their land has been sold and the children have deserted them. The communication is a “Shock Therapy” thought provoking TV, Radio and Social Media campaign that demonstrates the consequences of not having a fall-back plan and the benefits of having one.