The government of Kenya has revealed its latest initiative to incorporate financial education into the current curriculum. This decision stems from the government’s belief that encouraging people to save more is crucial.
According to a statement by the National Retirement Benefits Policy, prepared by the National Treasury, the government believes that this move will aid in compliance with the National Social Security Fund (NSSF).
Currently, there is low coverage of retirement benefits. The KICD has been assigned the responsibility of integrating these plans into the existing education curriculum. This is expected to be completed and finalized by December 2025.
“Performance indicators include enhanced education curriculum to include financial education in basic education and implement financial literacy programs for targeted groups,” read the policy in part.
The Kenyan treasury has highlighted that Kenyans face challenges with savings during their productive years, which consequently affects them once they retire from civil and private sector jobs.
Furthermore, retirement benefits are predominantly enjoyed by Kenyans who were employed in the formal sector. This creates a gap where individuals in the informal sector are not adequately catered to.
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“The government’s long-term socioeconomic development strategy, BETA, requires that the country provides a high quality of life to its citizens. However, the majority of Kenyans remain uncovered with retirement benefits at about 25%.”
“In this regard, there is a need for a comprehensive policy to address the various issues and challenges faced in the retirement benefits sector to achieve these aspirations,” the policy document added.
Additionally, many Kenyans retire with the primary aim of meeting their basic needs for healthcare and housing. This is largely because most retirement schemes do not provide benefits for post-retirement medical cover and housing.
As a result, the government is also developing a framework to encourage Kenyans to save towards their retirement homes and post-retirement medical cover.