By Virginia Siebela
A staggering seven out of ten Kenyans are not subscribed to any retirement benefits scheme, exposing a national crisis in financial security during old age.
According to Tom Kiptanui, Director of Market Conducts at the Retirement Benefits Authority (RBA), only 26% of Kenyans are actively saving for retirement—leaving the overwhelming majority without a structured plan for their golden years. Despite total pension savings hitting Ksh. 2.3 trillion as of December 2024, the participation rate remains alarmingly low.
“Our target is to raise the number of active savers from 26% to 34% by 2029,” Kiptanui said, noting that the current situation poses a serious risk not just for individuals, but for the country’s future economic stability.
In an effort to reverse the trend, Kiptanui urged Kenyans to take advantage of flexible retirement schemes that allow individuals to save as little as Ksh. 50 to Ksh. 100 a day. “Saving even a single shilling today can dramatically change your future,” he emphasized.
He also made a passionate appeal to employers, encouraging them to establish retirement saving plans for their staff to enhance long-term financial security.
Speaking in Machakos town outside the Huduma Centre, where RBA is running a week-long public sensitization campaign, Kiptanui addressed past frustrations around delayed benefit payments. “We’ve witnessed too many heartbreaking cases of retirees dying before receiving their dues. That should never happen again,” he said, assuring that the Authority now commits to disbursing retirement benefits within 30 days of retirement.
RBA is partnering with Huduma Centres across the country to educate more Kenyans about the importance of joining retirement savings schemes, hoping to bridge the gap and foster a culture of proactive financial planning.
