| dc.description.abstract | Social security is a very important aspect of any economy to cater for the vulnerable groups in the society. With this in focus, findings in vision 2030 indicate that more than fifty percent of the Kenyan population is dependant. The Kenyan government aims at increasing contributions to pension schemes in order to provide a comprehensive social security program to its citizens. To achieve these, NSSF act 2013 was assented into law, making it mandatory for every citizen to contribute six percent of their gross salary and the employers to also contribute to the same extend into pension savings for their employees.
With the law in play, pension savings are going to increase tremendously raising concern about the capacity of NSSF to administer the funds, accessibility of the funds, efficiency in investment of the funds and regulation of NSSF by RBA. Above all, maximizing the growth of the funds is very important; the two major approaches for holding the funds is the guaranteed or the segregated method. The aim of the study is to carry out a comparative analysis and establish which among the two approaches would be more beneficial to pension savings, maximize income conversion rate during old age and more so to help the government in its quest to provide a comprehensive social security platform for its citizens. | en_US |
