Ruto Pledges to Skyrocket NSSF Contributions, Targets Doubling Kenya’s 60-Years Savings in 4 Years
Kenyans might soon see an increase in mandatory deductions following President William Ruto’s pledge to boost the nation’s savings rate.
Speaking at the Annual Summit of the Africa CEO Forum, the head of state unveiled the government’s strategy to double the country’s 60-year savings within a four-year timeframe.
Over the past six decades, Kenyans have amassed a total of Ksh320 billion in savings through the National Social Security Fund (NSSF), as disclosed by the President, who aims to elevate this figure to Ksh640 billion.
Ruto emphasized that Kenya has had one of the lowest savings rates globally and asserted the necessity of aligning with peer nations boasting significantly higher savings rates.
Elaborating on his position, Ruto pointed out that Kenya’s savings as a percentage of GDP currently stands at 10 percent, historically one of the lowest. He contrasted this with other regions where the rate hovers around 40 to 50 percent and China’s impressive 55 percent.
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Highlighting the necessity for change, Ruto criticized the previous system where Kenyans contributed a mere Ksh200 monthly to the NSSF, deeming it regressive.
Under the revised scheme, every Kenyan now contributes 6 percent of their salary, matched by a 6 percent contribution from employers.
This initiative follows closely on the heels of the President’s recent announcement regarding additional taxes to aid the nation’s debt situation.
Speaking to Harvard University students at the State House in Nairobi, Ruto reaffirmed his dedication to financial stability, emphasizing the need to curtail borrowing.
Asserting his commitment to fiscal responsibility, Ruto declared, “I am not going to preside over a bankrupt country, I am not going to preside over a country that is in debt distress.
We have to cut our spending.” He also debunked the notion that Kenyans are heavily taxed, citing empirical data indicating that Kenya’s tax rate last year was at 14 percent.
Ruto Pledges to Skyrocket NSSF Contributions, Targets Doubling Kenya’s 60-Years Savings in 4 Years