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Octagon digitizes pension for the informal workforce ahead of the regional Insuretech summit
In a bid to give those in informal employment for saving towards their sunset days, Octagon Pension Services Limited has innovated…
In a bid to give those in informal employment for saving towards their sunset days, Octagon Pension Services Limited has innovated a digital pension product for the majority of the workforce.
Dubbed Mobikeza, the product has a unique advantage of allowing unlimited contributions, deposits and withdrawals.
“Octagon is committed to growing the Pension Sector coverage by simplifying access and understanding 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 the funds,” averred Octagon Pension Services Limited CEO Godwin Simba.
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MOBIKEZA was developed for the youth, Jua Kali artisans and workers in Micro-Small and Medium-Sized Enterprises. It is accessible as an android app or through a USSD code, the product has unmatched capability and convenience in on-boarding.
It 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 and can be accessed by dialing a USSD code *483*8000# or by downloading the MOBIKEZA app available on Google Play Store and Apple Store.
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.
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The launch of MOBIKEZA is extremely timely, as the CEO for the Retirement Benefits Authority (RBA) – Nzomo Mutuku puts it.
“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 chief 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. The informal sector constitutes 83% of the total workforce.
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As insurers rethink their business, operating and customer engagement models in order to maintain market relevance, CIO East Africa keeps abreast of technology advancements, always integrating new technologies into businesses to better business experience.
It shall on 19th September 2019, host a premier East AFrica regional Insuretech forum in the Nairobi Serena Hotel, to connect technology experts with insurance practitioners to enhance technology adoption into insurance products.
The premier InsureTech forum shall bring together the vast insurance industry stakeholders, policy makers in the sector and the technology industry players to provide a platform in which the insurance ecosystem will congregate and explore areas of collaboration, share insights and identify technology trends affecting their businesses.
For more details, click: https://events.cio.co.ke/event/east-africa-insuretech-forum/