More than half of pensioners in Kenya are living on less than Sh20,000 monthly, even as a majority bear the burden of taking care of dependents, a new survey shows.
The Retirement Benefits Authority (RBA) pensioner survey shows that 31.3 per cent earn a monthly pension of below Sh10,000 and 23.6 per cent between Sh11,000 and Sh20,000.
“Most respondents receive a monthly pension ranging from zero to Sh10,000, with 31.3 per cent falling into this category. 23.6 per cent receive a pension of between Sh10,000 and 20,000, 20.2 percent receive a pension of between Sh20,000 and 30,000,” the RBA survey shows.
A proportion of 22.3 per cent of the retirees indicated that they get monthly pensions of between Sh30,000 and Sh100,000, with just 1.9 per cent getting monthly pensions of over Sh100,000.
The high numbers of retirees taking home meagre pensions are, however, despite high cases of dependency by children and grandchildren of the retirees on the same money, which has added the burden on many in their sunset years.
The survey notes that 83.2 per cent of the retirees reported having dependents who rely on them for support, with the majority of the dependents aged over 18.
“The survey shows that the highest number of dependents among retirees are aged between 18-24 years and over 25 years, both with 206 dependents,” the survey says.
The high dependency rates on retirees is a reflection of Kenya’s high unemployment rates, which has been particularly straining on the youth.
Retirement Benefits Authority CEO Charles Machira.
Photo credit: Lucy Wanjiru | Nation Media Group
The high rate of joblessness has left elderly Kenyans having to use their pension to take care of their children and grandchildren, including paying their school fees, the survey notes.
“With children of retirees increasingly dependent on their parents and sometimes grandchildren, there appears to be a complex interplay of economic challenges and familial support dynamics, underscoring the need for targeted interventions to bolster employment opportunities and economic resilience moving forward,” the survey says.
It notes that on average, the retirees are spending Sh28,494 monthly on school fees, Sh22,720 on payment of loans, Sh14,405 to buy food and household goods, Sh10,229 on rent and Sh9,431 on medical bills or insurance.
At least 45 per cent of the retirees indicated they provide daily needs and upkeep to dependents who are not their children and 34 per cent of them paid school fees.
The burden of providing for their own children and even grandchildren in old age has been pointed as an unfortunate turn of events that reflects the tough economic situation in the country, taking away much of the savings the retirees worked on for decades.
More than half (51.9 percent) of the sampled retirees saved for 30 to 40 years by the time they retired, while 29.6 percent saved for 20 to 30 years, the RBA survey noted.
“However, there were some pensioners (25) who saved for more than 40 years. This indicates that there were individuals who were able to maintain a consistent saving habit over an extended period, even beyond 40 years,” the survey noted.
At least 56.7 percent of the retirees interviewed by the RBA retired between 2021 and 2024, while 37.9 percent retired between 2018 and 2021.
