Covid-19 aggravates poor saving culture

The Covid-19 pandemic has heightened the low saving culture in the country due to high poverty levels and the government has been urged to make deliberate efforts to improve the status of the economy.
The Chairman of Small and Medium-Sized Enterprises (SMEs) in Nakuru County, Johnston Ndegwa said a majority of residents including the working-class have little or nothing to save since the propensity to save is stronger among the rich than the poor.
Speaking to KNA during an interview at his office in industrial area Monday, Ndegwa said the working class in the country has a high dependency ratio because they have to take care of their parents, extended families and the orphans in their communities.
He said although the government has set aside Sh10 billion to cater for the elderly through the Inua Jamii programme, the largest population comprises the youth who are jobless that their plight needed to be looked into.
Ndegwa said the ominous signs of poverty are now exposed more than ever and the government should reconsider their poverty reduction policies.
He added that the car booth sales in the urban areas were an indication of working-class people who cannot survive on their savings even for just three months since they depend on the pay cheque.
He noted that poverty is a state or condition in which a person or community lacks the financial resources and essentials for a minimum standard of living and that the income level from employment is so low that basic human needs cannot be met.
He urged the counties to make a determined effort of setting up cottage industries to enable the innovative youth in the country to produce basic goods such as tooth-picks, soap and masks in order to boost the economy.
By Veronica Bosibori