Mbao Pension Plan
For a long time, the informal sector in the country had remained unreached. With only 15 per cent of the total work force covered by a registered retirement plan the Retirement Benefits Authority (RBA) had to come up with initiatives to reach out to the informal sector.
The RBA and the National Federation of Jua Kali Associations therefore collaborated to establish a suitable retirement benefits scheme that would cater for people in the informal sector. The “Mbao” Pension Plan was set up and was officially launched on 28 June 2011, for the Medium and Small Micro Enterprises (MSMEs) Sector and to help members of different Jua Kali Associations to save regularly to provide a long-term and reliable income when they retire from their jobs or business. The name “Mbao” refers to the amount – 20 Kenyan Shillings (KES) – which is the minimum daily contribution that members can make. Members can join and pay KES100 as a registration fee and then commit to saving at least KES20 a day, KES100 a week or KES500 a month.
2Kenya RBA 2011-1.pdf 226,21 kB