Deputy President Rigathi Gachagua has urged Kenyans to embrace the culture of saving, saying this is what will help the country get out of the yoke of external borrowing and instead borrow locally to finance its projects.
Speaking on Sunday during the 30th anniversary of the Solution SACCO in Meru County, Gachagua lauded the strides made by cooperative movements in driving economic growth and social development across the country.
“We want to enhance the saving culture in Kenya so that we borrow money as a country from our own savings. We have been borrowing abroad,” he said.
The deputy president added that they are working with parliament to amend the cooperative act, to enhance the financial inclusion of Kenyans, and especially farmers.
Gachagua also defended the government’s recent increment of Kenyans’ monthly deduction to the National Social Security Fund (NSSF) to Ksh.2,060 from Ksh.200, saying the previous saving regime was insubstantial.
“We have changed the law to allow you to save substantially,” he said.
For employees who were parting with Ksh.200 every month as statutory deductions, their contribution to NSSF rose tenfold, while those earning less than Ksh. 15,000 every month part with ksh.350 per month.
Those earning Ksh.15,000 are deducted Ksh. 900 per month, while for those with a monthly income of Ksh.18,000 and above, it is Ksh.1,080.
Some Ksh.3,000 is deducted from those earning at least Ksh.50,000 per month.
