Coast Workers Urged to Invest for Retirement Amid Rising Costs

By Mbungu Harrison

Email, thecoastnewspaper@gmail.com

Kenya’s Coastal region workers have been urged to save and invest as strategies for retirement planning habits due to economic uncertainties and rising costs of living continue to reshape financial realities.

The call was made during a Financial Wellness and Retirement Preparedness Forum organized by Octagon Africa in Kilifi County.

The forum brought together employees, human resource professionals and business leaders to discuss financial resilience, retirement readiness and long-term wellbeing.

Participants explored budgeting, debt management, emergency fund planning, investment, education, retirement preparedness and wealth creation.

Discussions also focused on inflation, healthcare costs, job market disruption, longevity and changing family responsibilities.

Speaking at the forum, Fred Waswa, group chief executive officer of Octagon Africa, said financial inclusion alone was not enough.

“Financial inclusion is only the beginning. True financial wellbeing is measured by an individual’s ability to withstand economic shocks, achieve important life goals and retire with dignity.

Many people focus on earning an income today without building the financial foundations needed for tomorrow. Wealth creation is not determined by how much you earn, but by how consistently you save, invest and protect your future,” he said.

He noted that employee financial security has become key to workforce resilience.

“Today’s workforce faces a range of risks that extend beyond the workplace. Inflation, healthcare expenses, longer life expectancy and economic uncertainty mean that retirement planning can no longer be postponed. Financial wellness, retirement readiness and financial literacy are no longer optional; they are essential life skills that help individuals build resilience and maintain financial independence throughout their lives.”

The 2024 FinAccess Household Survey shows formal financial access rose to 84.8 per cent of Kenyan adults, up from 83.7 per cent in 2021. Only 18.3 per cent are considered financially healthy.

Coastal counties recorded lower rates: Taita Taveta 20.8 per cent, Lamu 16.3 per cent, Mombasa 14.4 per cent, Kilifi 9.5 per cent, Kwale 4.9 per cent and Tana River 2.5 per cent.

Workers were urged to save consistently, build emergency funds of at least six months’ expenses, reduce reliance on expensive debt, and use pension schemes and individual retirement plans.