Gachagua Urges Kenyans to Save, Break Free from External Borrowing
Deputy President Rigathi Gachagua has urged Kenyans to embrace the culture of saving, saying that this is what will help the country get out of the yoke of external borrowing and instead borrow locally to finance its projects.
He said that this is what will help the country get out of the yoke of external borrowing because it is what will help the country get into the habit of saving.
Gachagua praised the strides made by cooperative movements in driving economic growth and social development all over the country while he was speaking on Sunday at the 30th anniversary of the Solution SACCO in Meru County.
“We want to improve the culture of saving in Kenya so that the country can borrow money from its own savings rather than having to rely on external sources. “We have been borrowing from foreign sources,” he explained.
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In addition, the Deputy President stated that they are currently working with Parliament to amend the Cooperative Act in order to improve the financial inclusion of Kenyans, particularly farmers.
Gachagua also defended the government’s recent increase of Kenyans’ monthly deduction to the National Social Security Fund (NSSF) to Ksh.2,060 from Ksh.200, saying that the previous saving regime was insubstantial.
He stated, “We have changed the law to allow you to save substantially,” which was his explanation for the change.
Those workers who were contributing Ksh.200 to the National Social Security Fund every month as part of their statutory deductions saw that amount increase to Ksh.2,000, while those workers whose monthly income was less than Ksh.15,000 were required to contribute Ksh.350.
Those with a monthly income of up to and including Ksh.15,000 are subject to a deduction of Ksh.900, whereas those with a monthly income of Ksh.18,000 or more are subject to a deduction of Ksh.1,080.
Those who earn at least Ksh.50,000 per month are subject to a deduction of approximately Ksh.3,000.
Gachagua Urges Kenyans to Save, Break Free from External Borrowing
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