Is the future of pension in Pensiontech?

In recent years, pension technology has emerged as an innovative and effective solution to address the challenges faced by pension systems in Kenya. Pension technology is a digital platform that enables pension schemes to automate their processes and provide seamless service to their members. In this article, I will explore the current state of pension technology in Kenya and its potential to transform the pension industry.

In Kenya, pension technology has gained popularity in recent years due to the increasing number of pension schemes and the need to improve the efficiency and effectiveness of pension administration. Pension schemes are facing challenges such as high administrative costs, slow processing of claims, and limited access to information by members. Pension technology aims to address these challenges by automating processes, improving access to information, and reducing administrative costs.

One of the key drivers of pension technology in Kenya is the increasing adoption of mobile technology. Kenya has one of the highest mobile penetration rates in Africa, with over 40 million active mobile subscriptions. Mobile money services, such as M-Pesa, have also gained widespread adoption, making it easier for people to transact and save.

A notable example of pension technology in Kenya is the M-Akiba platform. This is a mobile-based platform that was developed by the government to enable Kenyans to save for their retirement using their mobile phones. The platform enables users to contribute as little as Kshs. 50 ($0.50) to their pension accounts, making it affordable and accessible to all. The M-Akiba platform has been successful in increasing pension coverage in Kenya, particularly among low-income earners.

In addition to these platforms, several other pension technology solutions are being developed and implemented in Kenya. For instance, there are platforms that enable pension schemes to automate their investment processes, such as investment management, asset allocation, and risk management. There are also platforms that provide members with access to their pension accounts and enable them to track their contributions and benefits.

The benefits of pension technology in Kenya are numerous. Firstly, pension technology enables pension schemes to automate their processes, reducing administrative costs and improving efficiency. This means that pension schemes can process claims faster and provide better service to their members. Secondly, pension technology enables members to access their pension accounts and track their contributions and benefits, providing them with greater transparency and control over their retirement savings. Finally, pension technology can help to increase pension coverage in Kenya, particularly among low-income earners, by making pension schemes more affordable and accessible.

In conclusion, pension technology is a game-changer for the pension industry in Kenya. The technology has the potential to transform pension administration by automating processes, reducing administrative costs, and improving service delivery to members. With the increasing popularity of pension technology in Kenya, we can expect to see more innovative solutions being developed to address the challenges faced by pension schemes in the country.

Wycliffe Michieka CPAK, TDPK