CPF Financial Services, has announced an initiative to increase pension coverage in the counties by 30 per cent by 2018.
CPF is targeting to grow coverage from the current 15 per cent for both public and private sector by leveraging on technology platforms and enhancing capacity of its current network in the counties to bring services closer to workers.
Announcing the initiative ahead of the Devolution Conference, Group Managing Director Hosea Kili, said: “The level of retirement savings in the country is still very low, with the bulk of county workers lacking access to occupational pension schemes through which they can channel their retirement savings. The challenge going forward is not penetrating the urban population, but also the rural population, who are in greater need of understanding and becoming aware of current pension programs.”
Kili said the company would, through its client scheme CPF Mpension, concentrate more on tapping the informal sector, which accounts for over 80 per cent of the work force but has low pension coverage.
“The low awareness levels and knowledge about pension schemes among the informal sector is worrying. There exist enormous potential to grow the pension industry by tapping the large number of workers in the rural and un-organised sector that are excluded from pension schemes,” he said.
The company is a partner in the ongoing Devolution conference in Meru County.
The annual devolution conference has become a critical event in the annual devolution calendar, bringing together all stakeholders who use the conference time to discuss several matters of concern with regard to the implementation of devolved system of government.
Participants at the conference get an opportunity to deliberate on the successes as well as challenges that the new system of government is faced with and how to take advantage of the emerging opportunities presented by devolution.