Migrant workers from Kenya might soon be able to save for their retirement, thanks to a proposed law. The new legislative proposal may pave the way for migrant workers in Kenya to actively contribute towards their retirement through a voluntary pension scheme.
This law, called the Labour Migration Management Bill, 2023, wants to regulate private employment agencies and how workers are recruited with a key provision introducing a voluntary savings initiative for Kenyan migrants abroad.
According to Section 13(1) of the bill, which was sponsored by Senator Tabitha Mutinda, stipulates that the Cabinet Secretary responsible for foreign affairs, in collaboration with relevant Kenyan missions, will champion the establishment of the voluntary savings scheme.
The bill further empowers the Cabinet Secretary to engage with domestic financial institutions to secure favorable terms for the investments of contributions made by migrant workers.
During the unveiling of the Labour Migration Desk at the Jomo Kenyatta International Airport, Shadrack Mwadime, the Principal Secretary for the State Department for Labour and Skills Development, emphasized the potential benefits of the proposed retirement scheme for migrant workers in their later years.
Mwadime draws parallels to the retirement benefits enjoyed by civil servants in Kenya and expresses the intention to extend similar privileges to migrant workers, acknowledging the common challenge they face of returning home without substantial savings.
Last year, the Ministry of Labour suggested creating the Kenya Migrant Workers Welfare Fund. This fund is mandatory for all Kenyans working in other countries, and they have to contribute money to it.
The goal is to help migrant workers with things like relief, medical help, and support for them and their families if something bad happens. Before leaving Kenya to work abroad, every migrant worker must sign up and become a member of this fund.
Annual total remittances to Kenya by people living abroad are believed to be nearing the USD 1 billion mark, and there is significant untapped potential.
It is estimated that over 3 million Kenyan nationals live and work abroad. This constitutes an important resource that should be harnessed for our economic development. A rise in remittance inflows could generate a multiplier effect on the GDP, offering substantial advantages to the economy.
President William Ruto’s administration views tapping into the overseas labor market as a strategy to create job opportunities for the large number of unemployed Kenyans.
While speaking during the launch of the construction of the 12.5-kilometre Riruta-Ngong Commuter Rail line on Friday, President William Ruto said he will create opportunities everywhere.
With a demand for both skilled and unskilled workers, the administration has signed memoranda of understanding (MOUs) with various labor destination countries, including Germany, Austria, Bahrain, Oman, Poland, Jordan, Kuwait, Canada, Ireland, among others.
The proposed legislative measures Highlight the government’s commitment to addressing the financial well-being of migrant workers and establishing a framework that encourages savings and financial security during their employment abroad and retirement back home.
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