Octagon Pension Services has launched a new innovative digital pension plan that gives workers in the informal sector with inconsistent income a flexible platform to save for their retirement. Dubbed MOBIKEZA, the product has an added unique advantage of allowing a contributor to make unlimited deposits and periodic withdrawals via USSD or an app.
MOBIKEZA was developed with the youth, Jua Kali artisans and workers in micro-small and medium-sized enterprises (SMEs) in mind and has unmatched capability of convenience in on-boarding, tracking and access of funds all through the mobile with access to three types of investment funds namely; Ustawi Fund (Conservative), Hakika Fund (Guaranteed) and Usawa Fund (Balanced).
(TOP: Octagon Africa Group CEO Fred Waswa – right – explains to RBA CEO Nzomo Mutuku how the pension solution for the informal sector, MOBIKEZA, works. Looking on is Octagon Pension Services MD Godwin Simba).
“Pension coverage rate in Kenya is significantly low at 20 per cent compared to the 80 per cent coverage that is currently witnessed in the developed economies. To boost this coverage, there is a need to focus on the informal sector who constitute 35-50 per cent of the economy in developing countries such as Kenya. We believe that MOBIKEZA will be able to address the needs of the informal sector that require a flexible and affordable product that will be able to show daily, monthly and yearly yields, in turn, boost the saving culture and guarantee a comfortable life after retirement,” said Octagon Pension Services CEO Godwin Simba. “Octagon is committed to growing the Pension Sector coverage by simplifying access and understanding of the pension industry through innovative technology platforms and educating the informal sector on the benefits of saving for retirement, the yields of such investments and how to track your funds,” he added.
MOBIKEZA is powered by Octagon and is anchored under the Octagon Personal Pension Scheme, registered and regulated by the Retirement Benefits Authority. The solution’s platform is integrated with MPESA and the Bank’s platforms.
“The launch of MOBIKEZA is extremely timely with a key focus of increasing penetration of pension. As RBA, we are honoured to see such great strides by Octagon in targeting a critical mass- the informal sector that comprises of 83 per cent of the total workforce,” said Nzomo Mutuku, Retirement Benefits Authority Chief Executive Officer. “Through such micro-pension innovations, key players such as Octagon are able to convert awareness into enrolment and widen pension coverage in the country. We also have Government support through the Treasury and with support of the World Bank to increase pension penetration,” he added.
The Regulator lauded the need for innovation to accommodate the informal sector unlike the current pension plans that are mostly designed to cater to the formal sector in terms of access and contributions amount.
Octagon has invested Kshs 10 Million in the development of the solution.
Customers can now register and activate MOBIKEZA without the need to visit any physical office or fill out forms. MOBIKEZA can be accessed bydialing USSD code *483*8000# or by downloading the MOBIKEZA app available on Google Play Store and Apple Store.
Octagon Pension Services is one of the pension administrators in Kenya licensed by the Retirement Benefits Authority and a subsidiary of Octagon Africa Financial Services, a regional financial services provider offering pension and insurance brokerage services to individuals, nonprofit, public and private sector organizations. Octagon Pension Services Limited was started in a small office in Nairobi, Kenya and has since opened branches in Kisumu and Mombasa. In line with its Pan-African dream, Octagon has expanded its operations to Kampala, Uganda and Lusaka, Zambia. Over the last 12 years, Octagon has grown its client base tremendously from the 10 registered pension schemes in 2007 with a fund portfolio of Kshs 7 Billion to more than 200 corporate clients at the end of 2018 with a fund portfolio of over Kshs 100 billion.