Prime Cabinet Secretary (CS) Musalia Mudavadi now says the National Social Security Fund (NSSF) could be re-invested in development projects within the country.
Mudavadi was speaking today (Tuesday) during the launch of NSSF’s Corporate Strategic Plan 2023-2027 at Kenyatta International Convention Centre (KICC).
“You must think of a different approach which is visible. Suppose it was the pension fund that had done our Express Way as a long-term infrastructure project? All these tolls that we are paying along the Express Way would have been going to NSSF. This is a possibility,” he explained.
According to the Prime CS, this could have been more sustainable than borrowing loans from western countries for development projects.
On Kenya’s ambitious plan to become the Silicon Savannah of Africa, Mudavadi opined that NSSF would be a strategic investor in the internet connectivity plan rolled out by government.
“The government has already indicated that they want to roll out 100,000 kilometres of fibre optic in our country. What would happen if NSSF or other pension funds became critical investors in this technology space where in term is assured and you are also contributing to development?”
He was quick however to clarify that those were mere suggestions, but which would turn around the country’s economic situation by encouraging savings instead of borrowing.
Data from NSSF revealed that over KSh350 billion was contributed by Kenyans in form of pension. However, thousands of retirees were struggling to survive once their cease working.
“With an income replacement ratio upon retirement of just 40 per cent, well below the recommended level of 75 per cent, many retirees are finding themselves struggling to make ends meet in their golden years.”
Cabinet Secretary for Labour and Social Protection Florence Bore noted that her docket was working towards enlisting all working Kenyans whether in formal or informal work space, on the social security program.
“I urge all Kenyans to embrace the saving culture to secure our future and eradicate old-age poverty in our country,” Bore added.
The CS was also in attendance at the NSSF Corporate Strategic Plan 2023-2027.