Prime Cabinet Secretary Musalia Mudavadi has urged Kenyans to embrace the culture of saving for the country to strive economically.
Mudavadi was speaking on Tuesday during the launch of Nssf’s Corporate Strategic Plan 2023-2027 at Kenyatta International Convention Centre (KICC).
The CS said the habit of income consumption rather than saving has retrogressive effects within the society.
“We have to break away from the norm and inculcate a savings culture within our society and especially the median age of our population. For us to strategically build a workforce that will yield economic returns away from the habit of consumption this is the way to go.” said Mudavadi.
He noted the progress Kenyans are making in saving as part of their incomes for the future as a comparison to other nationalities saying there has been a great improvement in the Kenyan savings culture.
The Prime CS noted that Kenyans are catching up with other African countries that have a good record of savings for retirement.
He said Africa as a continent has to re-look its economic future adding that the culture of saving will play a major role in transforming Africa’s fortunes moving to the next frontier.
Mudavadi reiterated the importance of social security providers leading the path in order to rally Kenyans towards a savings society.
“It is important to note that a central focus of NSSF’s strategic plan is a renewed dedication to expanding pension coverage and promoting financial inclusion for all Kenyans. Initiatives targeting informal sector savings plan tailored specifically for market vendors, boda boda operators, taxi and matatu operators are crucial components of this effort,” he stated.
“By providing affordable and sustainable retirement savings options, the goal is to ensure that every Kenyan has access to financial security in their later years.”
Mudavadi said financial security and the well-being of millions of Kenyans, now and in the future, resonates with social security providers as cornerstones of the nation’s social and economic framework.
“Savings and pension sectors are so emotive. They elicit a lot of trust issues in relation to planning and governance. That is why we need to navigate carefully the path towards getting the citizens to understand what lies ahead as benefits in saving rather than being drowned into consumption traditions.” said Mudavadi.
He regretted that in the past, Kenyans traditionally considered pension as a retirement package, a belief that has had adverse socio-economic effects especially among the median age.
He said as a social security provider, NSSF plays a critical role in the promotion of Kenya’s economic development.
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