In an announcement at the Africa CEO Forum, President William Ruto unveiled plans to double Kenya’s 60-year savings within a mere four years, potentially leading to heightened mandatory deductions for Kenyans.

Addressing the audience, President Ruto disclosed, “For the past 60 years, Kenyans saved a total of Ksh320 billion through NSSF. I aim to increase this amount to Ksh640 billion.” He emphasized the urgency of enhancing Kenya’s savings rate to align with global standards, citing the country’s historically low savings rate compared to its counterparts.

Highlighting the disparity, Ruto revealed, “Kenya’s saving as a percentage of GDP is at 10 to 11 per cent, significantly lower than other regions at around 40 to 50 per cent and China at 55 per cent.”

President Ruto underscored the need for reform, criticizing the existing Ksh200 monthly contribution to NSSF as regressive. He advocated for a revised system where both employees and employers contribute 6 per cent of the salary, a move aimed at bolstering national savings.

This initiative follows closely on the heels of the government’s recent proposal to impose additional taxes to alleviate the country’s debt burden. President Ruto reaffirmed his commitment to financial sustainability, stating, “I am not going to preside over a bankrupt country. We have to cut our spending.”

The proposed increase in NSSF deductions signals a significant shift in Kenya’s financial landscape, with potential implications for citizens’ savings and the country’s economic stability.