You can now access pension products for as low as Kshs.50 per day.  

The Liaison Group, a financial services company has rolled-out a low-premium pension product targeting people who have been left out by traditional forms of pensions schemes. These are mainly the youth between the ages of 18 to 35, the unemployed, and those in the informal sectors of employment who are looking for a flexible way of saving for retirement.

Dubbed Mafao Fund, it is a voluntary individual account savings plan that is open to all Kenyans to contribute regardless of income or age.

The plan which targets the informal sector will help to encourage a savings culture among lower income earners.

Potential customers can register or sign-up online and conveniently make contributions anytime and anywhere using their mobile phones. You can also check your statement and withdraw benefits conveniently on your mobile phone. 

“The plan which features a tax-deductible limit of up to Kshs.20,000 per month allows an individual to build a savings income by making a regular contribution in the scheme during their working life,” Liaison Group Managing Director Tom Mulwa said.

 “To sign up, a customer will be required to press *609# on their mobile phone or sign up through the online portal.”

Liaison Group Head of Pensions Michael Mitau noted that the time has come for players in the industry to solve the Kenyan savings income challenge, especially amongst the youth.

“With as low as Kshs.50 per day, we are giving Kenyans from all walks of life a chance to define how we all face the future of social insurance. With Mafao Fund, we look forward to customers embracing the convenience and flexibility of this affordable pension scheme and the special benefits that come with it,” Mr. Mitau said.

He added that Mafao Fund has been conceived by the need to address evolving investment needs. The fund offers a minimum guaranteed interest of 4%, flexibility when a customer wants to transfer from one scheme to another and a life insurance rider on the request of a customer is inclusive.

“One of the biggest worries for people is maintaining their existing lifestyle when they leave employment. Very few people belong to pension schemes or have individual savings plans. Barring the National Social Security Funds across East Africa (which are compulsory), there is a need to aggressively become agile in anticipating and adapting to our clients’ needs,” he added.

If you save through a scheme known as a defined contribution pension scheme your regular contributions are invested so that they grow throughout your career and then provide you with an income in retirement. Generally, you can access the money in your pension pot from the age of 55 or up to two-thirds of the amount before retirement in a one-off deal.