FKE Calls for New Social Protection System for Informal Workers

FKE Calls for New Social Protection System for Informal Workers

The Federation of Kenya Employers (FKE) has called for major reforms to Kenya’s social protection system to ensure millions of informal workers can access reliable financial support during retirement, unemployment and other economic disruptions.

FKE Executive Director Jacqueline Mugo made the call on Monday, October 5, during the 2026 National Social Protection Conference, where she urged the government and other stakeholders to develop sustainable ways of financing social protection programmes.

The federation said the current system does not adequately cover workers in the informal sector, many of whom have irregular incomes and no conventional employer to make statutory contributions on their behalf.

Mugo proposed the development of social protection financing models specifically designed for informal workers.

The proposal would seek to make it easier for people working in small businesses, casual employment and other informal activities to participate in social protection programmes.

FKE wants flexible contribution system

FKE also called for digital and flexible contribution systems that would allow informal workers to make payments based on their income and ability to contribute.

Unlike formally employed workers who receive regular salaries, informal workers may experience significant changes in their earnings from one month to another.

A flexible system could therefore allow workers to contribute smaller amounts more frequently or increase their contributions when their income improves.

The proposal is aimed at expanding social protection beyond the formal employment sector and ensuring that workers are not left without financial support because they lack a conventional employer.

Skills training for informal workers

FKE further called for programmes aimed at training people working in the informal sector and improving their ability to withstand economic and climate-related disruptions.

The federation said skills development could help workers return to employment or income-generating activities after losing their livelihoods because of economic shocks, extreme weather or other disruptions.

The proposal comes amid wider efforts to strengthen social protection and expand access to retirement savings among Kenyans outside formal employment.

NSSF expands access to informal workers

The National Social Security Fund (NSSF) has already introduced options that allow Kenyans without formal employment to make direct contributions towards retirement.

Through voluntary membership, informal workers can register with NSSF and contribute directly using mobile money.

Members can contribute as little as KSh200 per month or KSh4,800 annually under the voluntary contribution arrangement.

NSSF also operates the Haba Haba programme, which is designed to allow workers to save flexibly and make contributions on a daily basis.

Under the programme, members can begin saving from as little as KSh25.

The existing arrangements provide a potential foundation for the wider social protection reforms proposed by FKE, particularly if digital contribution systems are expanded and made easier for workers with unpredictable incomes.

Formal and informal workers face different challenges

Workers in formal employment generally have identifiable employers, regular salaries and established systems for making statutory contributions.

Employers can deduct contributions directly from salaries and remit them to the relevant institutions.

Informal workers, however, often operate without a permanent employer or predictable monthly income. This makes traditional contribution models more difficult to apply.

FKE’s proposal seeks to address this gap by creating systems that reflect the realities of informal employment.

The federation’s call also places renewed focus on the role of employers, government agencies and other stakeholders in creating a social protection system that covers a larger share of Kenya’s workforce.

If adopted, the proposed reforms could expand access to retirement savings and other social protection services while helping informal workers build greater financial resilience against economic and climate-related shocks.

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FKE Calls for New Social Protection System for Informal Workers