Ruto reveals plans to have unemployed Kenyans save Ksh 2,000 per month in a new NSSF plan
3 min readRuto reveals plans that will have government help unemployed Kenyans save Ksh 2,000 per month in a new NSSF plan.
On September 25, President William Ruto announced that the government was working on helping unemployed Kenyans develop a saving culture through the new NSSF plan
The Head of State announced in a speech at the State House at a Thanksgiving ceremony that the state would encourage saving by matching a portion of an individual’s contributions to the National Social Security Fund (NSSF).
Ruto also stated that initiatives were underway to raise the monthly savings amount for working Kenyans from Ksh 200 to Ksh 2,000.
“We are re-engineering that whole space (NSSF) and we want every Kenyan to save. For those who are employed, their employers should match their savings.
“Those who are not employed, the Government of Kenya will save with them. If any Kenyan saves an amount, the Government of Kenya will give them money equivalent of their savings to become part of their savings. It is the only way we can build a culture of savings,” the Head of State remarked.
He pointed out that it made no sense for all employed people, whatever of their income rates, to put aside Ksh200 each month for savings.
In order to ensure that his savings plans are accepted, Ruto said that he will engage closely with National Assembly members and their colleagues.
“I know there was a ruling this week at the court on matters to do with savings in this country. They have told us to do certain things including going back to the Senate so that we can proceed together. That we are going to do because savings is a must.
The president further hinted at the Government’s intention to start borrowing locally noting that the high interest paid by his predecessors to international lenders could, instead, benefit Kenyan savers.
“We cannot continue to borrow from the savings of others. If we are to borrow, let us borrow from our own savings so that we can pay interest to our own savers and build our country with our own savings,” he added.
The state’s attempt to raise NSSF contributions to Ksh2,068 has however been halted by the High Court in Nairobi, which said there was no public participation.
On Tuesday, September 20, the three-judge panel also highlighted that the law’s authors had failed to get Senate support.
On Tuesday, September 20, the three-judge panel also highlighted that the law’s authors had failed to get Senate support.
The NSSF contributions have increased from the previous Ksh160 to the present Ksh200 since the last review in 2001.
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