KNEST urges small-scale entrepreneurs to secure their future through pension savings

Small-scale entrepreneurs have been urged to turn their daily earnings into long-term financial security by saving through the Kenya National Entrepreneurs Savings Trust (KNEST).

The call comes, amid growing concerns over the retirement preparedness of workers in the informal sector.

The organization is targeting boda boda operators, market traders, vegetable vendors and other self-employed Kenyans, encouraging them to develop a savings culture by setting aside small amounts from their daily income to support them when they can no longer work.

Speaking during a boda boda sensitization exercise in Murang’a, KNEST Deputy Director of Corporate Communications Lucy Kamau said the pension scheme provides an opportunity for entrepreneurs, who lack formal employment benefits, to prepare for old age.

Kamau explained that members could contribute as little as Sh50, Sh100 or Sh200, depending on their earnings, making the scheme accessible to people whose incomes fluctuate from day to day.

“We encourage them to invest their money, and they can contribute small portions depending on their daily income,” she stated.

The Deputy Director noted that many small-scale business owners concentrate on meeting their immediate needs and expanding their enterprises but often overlook retirement planning, leaving them financially vulnerable when age or ill health limits their ability to earn.

Kamau observed that regular contributions, however small, could help entrepreneurs build a financial cushion for their later years, instead of relying on their children, relatives, neighbours or government assistance.

“KNEST is your partner in saving for the future, when you may no longer have the strength to work,” she said, urging informal sector workers to make retirement savings part of their everyday financial decisions.
The scheme also allows members to access up to 30 per cent of their savings for emergencies, subject to its terms and conditions, providing some flexibility while encouraging continued saving for retirement.

Kamau added that KNEST had attracted 1.7 million members and had introduced a mobile platform through which subscribers can make contributions, check their balances and statements, nominate beneficiaries and access eligible emergency withdrawals.

“Interested entrepreneurs can register by dialing *254# and selecting KNEST from the available options,” she noted.

Meanwhile, Boda Boda Association of Kenya National Executive Chairman Kevin Mubadi urged motorcycle taxi operators to exercise financial discipline, saying daily earnings could fail to translate into lasting financial stability without proper planning.

Mubadi observed that some riders spent most or all of their daily income without setting aside money for emergencies, business expenses or their future, leaving them exposed when business slowed down or unexpected costs arose.

“People are making money, but some spend all of it, thinking that tomorrow there will be more money,” he said.

The chairman called for greater financial literacy among riders to help them manage their earnings, meet loan repayment obligations and build sustainable businesses.
Mubadi also cautioned operators against excessive alcohol consumption, urging them to prioritize their livelihoods and make responsible financial decisions.

On road safety, he called on riders to observe traffic rules, maintain peace during the electioneering period and avoid criminal activities that could damage the reputation of the bodaboda industry.

The sensitization exercise sought to promote pension savings, responsible financial management and safer business practices among small-scale entrepreneurs, many of whom depend on their daily labour for income and have no employer-sponsored retirement benefits.

 

By Bernard Munyao and Ann Kendi