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Extending pension and savings scheme coverage to the informal sector: K enya's M bao P ension P lan
Author(s) -
Kwena Rose Musonye,
Turner John A.
Publication year - 2013
Publication title -
international social security review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.349
H-Index - 28
eISSN - 1468-246X
pISSN - 0020-871X
DOI - 10.1111/issr.12010
Subject(s) - plan (archaeology) , business , key (lock) , pension , pension plan , industrial organization , telecommunications , finance , computer science , computer security , archaeology , history
Abstract The M bao P ension P lan is a voluntary individual account savings plan to which all workers in K enya may contribute without regard to income or age. It is designed to provide a programme that is suitable for the unique nature of the informal sector and to encourage a savings culture for those workers. The key innovation is that low‐income workers can easily make small contributions at relatively low cost, considering the small contributions and small account balances. Participants can conveniently make contributions anytime and anywhere using their cell phones. This savings innovation is made possible by technological innovations that have reduced the costs of cell phones and airtime, and by the entrepreneurial innovation of mobile money. The plan is provided through private‐sector businesses.