Kenya’s government has recently unveiled a new initiative aimed at integrating financial education into the existing curriculum. This decision is driven by the government’s recognition of the importance of fostering a culture of saving among its citizens.
The National Treasury, as outlined in the National Retirement Benefits Policy, emphasizes the significance of this move in promoting compliance with the National Social Security Fund (NSSF). Currently, there exists a notable deficiency in retirement benefits coverage, particularly affecting individuals in both public and private sectors.
To address this issue, the Kenya Institute of Curriculum Development (KICD) has been tasked with the responsibility of integrating financial education into the current educational framework. The completion of this integration is slated for December 2025.
One of the key objectives outlined in the policy is to enhance the education curriculum by incorporating financial literacy programs, targeting various demographic groups. The Treasury highlights the challenges faced by Kenyans in saving during their working years, leading to insufficient provisions upon retirement.
Moreover, the disparity in retirement benefits access between formal and informal sector employees exacerbates the problem. To bridge this gap, the government aims to implement a comprehensive policy addressing the multifaceted issues within the retirement benefits sector.
Under the government’s social economic development strategy, BETA, there is a pressing need to elevate the quality of life for all citizens. However, with only around 25% of Kenyans covered by retirement benefits, there is a significant gap to be addressed.
The policy recognizes that many retirees primarily rely on their benefits to meet basic needs like healthcare and housing. Yet, the existing schemes often fall short in providing post-retirement medical and housing benefits.
To tackle these challenges, the government is working on a framework to incentivize savings for retirement homes and post-retirement medical expenses. This holistic approach aims to empower Kenyans to secure a more stable financial future beyond their working years.
