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Digital Pension Plan Mobikeza Launched for Informal Sector

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Financial services firm Octagon Africa says it is targeting the informal sector with the launch of Mobikeza, a digital pension solution.

The pension plan app was launched on August 27 with Octagon saying that it had the youth, Jua Kali artisans and workers in Micro-Small and Medium-Sized Enterprises in mind during the development of Mobikeza.

Octagon Pension Services chief executive Godwin Simba said that the pension coverage rate in Kenya is low, at approximately 20%, compared to the around 80% witnessed in developed economies.

“To boost this coverage, there is a need to focus on the informal sector who constitute 35-50% of the economy in developing countries such as Kenya,” he said.

Mobikeza, which is powered by Octagon and anchored under the Octagon Personal Pension Scheme, is registered and regulated by the Retirement Benefits Authority (RBA). The solution’s platform is also integrated with M-Pesa and the Bank’s platforms.

RBA Chief Nzomo Mutuku said, “The launch of Mobikeza is extremely timely with a key focus of increasing penetration of pension.”

Octagon said that it has invested Ksh10 million in the development of Mobikeza, which is available via a USSD code number, as well as downloadable from the Google Play Store and the Apple Store.

Linked to a users mobile phone, the digital pension plan makes it easy for workers in the informal sector to on-board, track and access funds all through their handsets.

Octagon said that the Mobikeza platform security is secured by having deposits and withdrawals locked to a member’s mobile phone number. “We have also interfaced with M-Pesa push to ensure deposits come from the members registered phone numbers.”

The firm added, “Only the registered phone number can access a customers Mobikeza account with a valid pin. Each account is uniquely linked to the member’s phone number.”

Mobikeza comes from Octagon Africa, a financial services firm that was founded in Kenya in 2007.

Dealing in pension, trust management and insurance, the firm operates in Kenya, Uganda and Zambia with 70 staff.

The company said that in pension, it administers assets in excess of Ksh80 billion assets.

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Mike Njoroge
Mike Njorogehttp://www.businesstoday.co.ke
Mike Njoroge is the founder of Daystar Oracle and FootballTriangle. He is passionate about news, religion and sports. He can be reached at: [email protected]
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