Kenya Commercial Bank (KCB) has launched Liaison Pension Scheme “Ituze” to inspire the culture of saving and creating individuals’ own wealth for the future.
The pension scheme, Ituze “The Peace of Mind”, was officially launched by the Governor of the National Bank of Rwanda (BNR) John Rwangombwa.
During the Launch at Mille Collines Hotel, Rwangombwa commended KCB for introducing the scheme that he believes will contribute to the national growth.
Rwangombwa noted that 80% of employees in Rwanda are employed by the private sector companies and encouraged the private sector to sensitise their employees to save for retirement.
“it becomes a burden for the nation when people get old, unable to work to get an income, without having saved,” He said.
“Rwandans are thirsty for saving and investment channels,” the Governor said, revealing that “last month when the Central Bank released the 10-year Treasury bond, 49% of people who subscribed were individuals”.
The Liaison Pension scheme “Ituze” launched by KCB in Rwanda is the third in East Africa after Kenya and Uganda, according to Fred Nyayieka, a consultant in “Ituze”.
Nyayieka said that “the liaison was built on the ICT platform considering the fact Rwanda is a hub for technology in Africa and it allows individuals to thrive.”
He said Ituze is a voluntary pension scheme with the contribution levels determined by members’ ability to pay and has got the international based practices.
“The scheme requires no set up fees cost and management costs are clearly defined,” said Nyayieka, who added that “One may access his Ituze account from anywhere in the world as it has a web based system which will be linked to individual mobile money accounts”.
Basing on the fact that the private pension sector in Rwanda is still fairly “young the law governing it having been enacted in 2015, Ituze will accommodate both companies and individuals.”
Ituze will have regular communication to members and different from the Rwanda Social Security Board where one is paid when he reaches retirement age, in Ituze, “you are able to access your benefits even at the age of 30 and be able to do whatever you want with your money” as Fred Nyayieka explains.
“The other benefit,” Nyayieka added “is that you can stop contributing at any time. When sometimes you have a job and you don’t have it tomorrow, the money you get comes with the interest which is like an investment income.”
The law ensures that one “can’t lose his money for even if the bank collapses, one’s money is safe with Ituze platform”
“Ituze Pension Scheme will have no limit or the minimum contribution fare for individuals”, the difference may be for the organizations which, for administrative purposes, can set up limit fees.”
KCB’s Managing Director, George Odhiambo said, “the majority of Rwandans are young, and the culture of savings was low in the past. Whereas Rwanda is doing well today, we will have a problem in the future because if we don’t save and we are young, growing old everyday, time will come when so many people are out of employment, with no income and nobody will feed them. That’s why we are starting now so that these young people start saving and when they retire, they could continue living like normal.”