President William Ruto has vowed to ensure increased payments of National Social Security Fund ( NSSF) funds by employees and employers, a move which has not settled well with many Kenyans. The president has bashed the Ksh 200 monthly payment on the fund as a joke and pointed out that the country lacks a saving culture; increasing the nssf fund is aimed to be one of how the new regime will seek to generate revenue with the debt-ridden economy.
” Our debts have a hold on us. We use 65% of the taxes we collect to settle debts. Pray for our economy, please. We borrowed since our savings were not wisely managed. Every employee in Kenya barely saves Sh200 per month. We’ll examine NSSF.” stated Ruto.
Kenyans continue to deliberate on the matter and have raised concerns on the following critical issues.
1: Private Saving
A good number of Kenyans are doing vibrantly with private schemes, including SACCOs and pension companies contracted on behalf of their companies. So far, they have achieved significant benefits compared to the public schemes, which have not been effective in past experiences. The saving culture can not be ignored among Kenyans from the records run on various sectors of the economy. Most Kenyans are demanding their free will to make their choice on financial decisions without following a specific dedicated direction.
NSSF Fund has had a dark history, especially in mismanagement and corruption. The sector, in some instances, has faced mega corruption scandals. A good number of Kenyans have raised concerns about the credibility of some of the government institutions, which have had a dark past and are requesting a new regime to strengthen and make changes in some institutions like NSSF to achieve transparency and regain confidence again among Kenyans.