Old Mutual Chief Executive Officer Peter Mwangi has said that Kenyans spend more than 91 percent of their monthly earnings, leaving them with no savings for the future.
According to Mwangi, the trend is worrying and Kenyans need to be enlightened on the need to save, to be safe on retirement or on the unfortunate event of losing a gainful employment.
“There is a study that was recently done in East Africa nations which revealed that way too many East Africans, Kenyans included spend more than they earn on a monthly basis. We think that is not sustainable because on retirement these people will be totally unprepared for the challenges ahead,” said Mwangi.
Mwangi advised that the key to a peaceful retirement is for the people to be encouraged to save and invest when they are still young in their careers.
“Saving and investing culture has to be inculcated into our people so that they are able to avoid the challenges that come with retirement,” added the CEO.
He was speaking in Eldoret town on Tuesday during a financial training class organised by the insurance company.