Madison in pact to train AP officers on financial management and investments

Madison Life Assurance has said it is in plans to partner with Kenya’s Administration Police in a bid to increase financial awareness among officers within the force.

The insurer noted that the level of financial literacy among many officers mirrors that of Kenyans generally, where just a handful of people are able to handle their finances while also saving for the future, particularly retirement.

Githua Ngaruiya, Chief Executive Madison Life, said the firm would organise financial clinics targeted at officers within the Administration police, particularly those who are still young in the force. 

“We have financial clinics, which are aimed at showcasing what products are available for investments within the insurance sector,” said Ngaruiya, added that other than opening up the young officers to different options to save. 

“We are starting to teach young professionals and people getting into the service to start planning for retirement and you cannot plan without information. The first step should be equipping people with the information.”

He added that the insurance sector has a range of investment products for different consumer segments, some which offer a safety net for the customers and their families.

Ngaruiya spoke during a meeting with senior officers at the Administration Police Unit at Mbagathi. 

Mr. Lazarus Opicho, Commandant SGB and VIP Protection Unit, welcomed the move to train officers through the financial clinics, noting

that many officers have not been exposed to other options of saving and investing, with many of them largely relying on Saccos and banks. 

“Most of my colleagues normally look at investment through the cooperatives. We never look beyond that. We need to bring this knowledge to

our colleagues, especially the younger generation,” he said. 

“It is an area where our officers have never been taken through. Insurance companies have rarely talked to us, it is mostly the Saccos and the banks.”

This is even as he noted that there is a need to equip officers with knowledge about the different products that are there in the market. He also noted that it is regrettable that many officers often suffer during retirement due to lack of information on where to put their money and earn a decent return during their working years.

Opicho also derided the rise in alternative lenders such as shylocks and digital lenders, which he noted have been exploiting young officers, something that is also seen in the wide Kenyan society.

 

“Most of our people are borrowing from some financial entities, which are taking advantage of our officers and many young Kenyans. They are given loans but the constant reminders about the loans and the process of debt collection has been driving some of them into depression,” he said.

He added that there is need for increased knowledge on different products where young people getting into employment can put their money, noting that many retired officers are suffering as the amount they get through monthly pension payments is dismal to meet their needs.

“If our young people have information on how they can invest money in different products and across sectors, they will be better off in managing their finances and even save enough to retire comfortably,” said Opicho.

“We need to start talking to our officers early and also by the time they are approaching retirement, we need to also start preparing them for retirement otherwise you will find that you have worked for 30 years but have nothing to show for it.”

Madison Group Head of Marketing, Dr. Yvonne Tharao noted that other methods of saving included acquisition of property, something that Madison Insurance has been offering. 

“We have a solution for everything. We have houses and land that we are selling at Athi River. It is something that you can pay over five years. We also a partnership with HF that can finance the acquisition or even pave an agreement with your Sacco,” she said