Pension scheme, Octagon Pension Services Limited has launched a Ksh10 million digital pension solution for workers in the informal sector dubbed Mobikeza.
“To boost this coverage, there is a need to focus on the informal sector. We believe that Mobikeza will address the need for a flexible and affordable product and guarantee a comfortable life after retirement,” Octagon Pension chief executive Godwin Simba said.
Mobikeza is anchored under the Octagon Personal Pension Scheme which is regulated by the Retirement Benefits Authority.
It is powered by Octagon and is anchored under the Octagon Personal Pension Scheme, registered and regulated by the Retirement Benefits Authority. The solution’s platform is integrated with MPESA and the Bank’s platforms and can be accessed by dialing a USSD code *483*8000# or by downloading the MOBIKEZA app available on Google Play Store and Apple Store.
Pension coverage rate in Kenya is significantly low at 20 per cent compared to the 80 per cent coverage that is currently witnessed in the developed economies. To boost this coverage, there is a need to focus on the informal sector who constitute 35-50 per cent of the economy in developing countries such as Kenya.
The launch of MOBIKEZA is extremely timely, as the CEO for the Retirement Benefits Authority (RBA) – Nzomo Mutuku puts it.
“Through such micro-pension innovations, key players such as Octagon are able to convert awareness into enrolment and widen pension coverage in the country. We also have Government support through the Treasury and with support of the World Bank to increase pension penetration,” he added.