Millions of Kenyans upto 85 percent working in informal sectors live their sunset years in fears, some in deep problems as they have no pension scheme, an issue that pension fund administrator and the leading financial services provider Zamara Group together with a Singapore-based tech firm, pinBox Solutions, have over the week launched a solution to by widening micro-pension coverage in Kenya. This solution is meant to insulate low-income earners against old-age poverty. The target population includes domestic help, youth, self-employed women and other non-salaried individuals.
The two companies have developed a model that will be used by Zamara to establish an inclusive digital micro-pension marketplace.
The Director and cofounder of pinBox, Parul Seth Khanna, said the micro-pension scheme will tap the country’s 17 million informal sector workers.
“This is a very important first step for us as we march ahead in collaboration with governments, regulators and pension and financial inclusion stakeholders across Africa to help deliver secure and affordable retirement solutions to 500 million excluded non-salaried workers,” Mr Parul said.
The model that was developed by pinBox was first adopted by Rwanda for launching of its national-level government-sponsored EjoHeza micro-pension scheme in December last year.
“PinBox is now working with an institutional consortium led by Kenya’s leading pension administrator, and including some of Kenya’s largest insurers, retail commercial banks and cooperatives to launch Africa’s first, national-ID linked, and private sector driven national micro-pension scheme targeting Kenya’s 15 million informal sector workers,” PinBox team said.
While speaking at the launch of the digital micro-pension programme at the Afro-Asia FinTech Festival in Nairobi, Zahara Group CEO Sundeep Raichura said;
“The solution will provide a secure and affordable mechanism which any Kenyan citizen will be able to conveniently access simple and regulated pension and insurance solutions,”