Kenyan pension schemes continue to record reduced savings from members due to the novel coronavirus that has seen massive layoffs and stagnation in economic activities. Kenyan Wallstreet had the opportunity to talk with Octagon Africa Group CEO Fred Waswa zeroing on recent developments in the pensions landscape.
Mr. Waswa agrees that the pandemic has stagnated economic activity and led to the disruption of normal operations. The massive layoffs witnessed across many sectors have contributed to the decline in pension contributions. Additionally, the rising cost of living and declining revenues have adversely affected pension contributions.
Fund managers are taking a cautious approach in investing, only taking opportunities that will benefit members when the economy bounces back after the pandemic.
SMEs who are a major component of umbrella schemes have also been affected as they downsize and send staff on unpaid leave to survive this pandemic.Fred Waswa – Octagon Africa MD
Some members of pension schemes have had to withdraw their savings due to the tough economic environment.