President William Ruto has expressed confidence in the country's growing domestic savings, projecting that the country will accumulate over Ksh1 trillion in national savings by 2027.
Speaking during Labour Day celebrations on Thursday, May 1, Ruto highlighted the country’s previous savings culture, noting that it was underwhelming in comparison to regional neighbours.
He stated that until 2023, the average Kenyan worker contributed only Ksh200 per month to the NSSF, leading to modest national savings of just Ksh320 billion over a 60-year period.
"I'm proud to report to the nation that we are not merely making declarations; we are taking bold, concrete, and measurable steps. We are walking the talk, and here is why: For decades, our national savings culture was stagnant compared to our neighbours in Uganda and Tanzania.
"Until 2023, the average Kenyan worker saved just Ksh200 a month through the National Social Security Fund (NSSF). Over a span of 60 years, we collectively as a nation managed to save only Ksh320 billion,” he explained.
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However, Ruto noted that the implementation of the NSSF Act which mandates a 6% savings contribution from both employees and employers led to a sharp turnaround in national savings.
“In 2023, we operationalised the law mandating a savings contribution of 6% by both the employee and employer, and the result has been remarkable and impressive. In just two years, we have mobilised Ksh280 billion in national savings, nearly equal to what was saved over six decades,” he said.
Ruto added that by the end of 2024, Kenya will have doubled its cumulative savings from the previous 60 years and set an ambitious target for 2027.
"By the end of this year, we will have doubled that 60-year figure, and by 2027, we project to have raised over Ksh1 trillion in domestic savings. Kenya’s savings-to-GDP ratio currently stands at between 10% and 12%. My intention is to raise this to 25% in the medium term,” he affirmed.
