By Nicholas Manduku
The ministry of labor and social protection is committed to leverage on public private partnerships to create a more secure pension system in Kenya.
According to the CS labor and social protection Florence Bore who was represented by Joseph Motari Principal Secretary,Social Protection,she noted that pension are integral aspect of social security and can be the difference between financial stability and insecurity for many people.
Bore in her speech noted on the increased pressure on pension and social security systems ,which deal with aging populations, changing demographics, and economic downturns and hence need for both the public and private sector to secure pension institutions.
“The collaboration between all involved parties will be essential in creating sustainable solutions.
The National Government is ready to work together with industry players to devise innovative strategies that cover issues such as demographic shifts and long-term sustainability as well as provide legislation that protects members against potential exploitation.
I am confident that leveraging public-private partnerships will be essential in creating a more secure pension system. Working together, we can find new solutions that benefit all of us involved in the social security sector” said Bore
Motari read the Cabinet secretary speech on Wednesday during the opening of the 2nd annual International Association of Pension Trustees and Administrators of Kenya (APTAK) at Sarova Whitesands in Mombasa
Bore also emphasized on need for more robust financial literacy campaigns among pension funds .
On his part APTAK President Hosea Kili said that this year’s conference is setting stage to address emergent social economic challenges in addition to highlighting the support of the Government’s Social Protection agenda besides strengthening partnerships between the government and the industry players.
“In line with this year’s Conference theme, which is recreating Sustainable Saving Solutions for the Pension & Social Security Sector, this second iteration of the APTAK International Conference will (over the next 3 days) unpack key themes and set priority areas for the industry.
These include the adequacy of current pension and social security benefits; how we as an industry can collaborate with the National and County Governments to deepen pension penetration in Kenya and the region; and how innovations can be leveraged to improve the efficiency and effectiveness of pension and social security systems” said Kili.
According to Kili APTAK will focus on developing and strengthening secure investments, to meet the needs of their customers besides ensuring pension funds enjoy long-term stability and financial success.
“I would like to point out that countries such as Lesotho, Zanzibar, South Africa, Namibia, Botswana, Rwanda and Mauritius among others, have established Universal Social Protection Funds for their citizens. The cost of delivering universal benefits is not beyond the means of resource-strained countries such as ours. For instance, the annual cost of implementing large-scale social pension schemes is less than 2% of GDP in Namibia and 1.4% in South Africa. Administration accounts for only 2%-3% of benefit payments in Botswana and Mauritius. These figures are a clear indication that indeed it can be done” added Kili
APTAK President reassured if their continued advocacy and offer expertise on social security to relevant government authorities, and support the ministry of labour , in making necessary steps towards its realization.