The Zamara Group has signed a Memorandum of Understanding with the Kenya National Federation of Jua Kali Associations (KNFJKA) to drive financial inclusion in the informal sector.
This will enable saving and protection from old age poverty and pertinent risks that come along with the life cycle of the average Jua Kali worker.
The two parties aim to seek ways to continue with the protection of the sector’s members. The first initiative within the partnership is the launch of Zamara’s Savings and retirement product, Fahari Retirement, to the over 18 million members across the country.
The Retirement plan is an individual retirement solution targeted at the individuals within the productive age of the population to save for their future.
Speaking during the signing ceremony held at Serena Hotel, Zamara Group CEO said, “We recognize that in the current environment we live in, the best way to have an adequate income for the future when you are not agile to work anymore is to gradually save as much as you can while you are still strong enough to work. Pension schemes, especially individual pension schemes like Fahari, are fundamental in the journey towards financial security. Roughly speaking, if two individuals aged 20 and 30 start saving Sh500 every month up to age 55, their savings earn 10% per year compounded every year month.”
On his part, Richard Muteti, H.S.C. CEO, Kenya National Federation of Jua Kali Associations said, “We are grateful to Zamara for identifying this gap and initiating the process to accord the sector a solution that will offer our members a dignified future, especially when they are no longer strong and agile enough to continue with their work for the much-needed income. The savings solution we are launching today is a game changer and will be a great determinant of how you finish your financial journey.”