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Kenya’s pension paradox: Growth amid low coverage
Participants arrive for the East African Pensions Conference & Expo 2025 at the Kenyatta International Convention Center (KICC), Nairobi, on October 23, 2025.
The third edition of the East African Pensions Conference and Expo opened in Nairobi on Thursday with a call to widen Kenyan’s pension coverage and curb old age poverty.
Hosted by the Nation Media Group (NMG), the annual event has become the region’s platform for policy shifts to increase the number of East Africans saving for a pension and boost the value of payouts at retirement.
Participants register for the East African Pensions Conference & Expo 2025 at the Kenyatta International Convention Center (KICC), Nairobi, on October 23, 2025.
Official data show more than 80 percent of senior citizens work for basic items, raising questions about the adequacy of pension payouts and coverage of retirement benefits.
Analysts point out that the relatively low number of Kenyans saving for pensions and the value of retirement payouts have compelled many retirees, especially those above the legal retirement age of 60, to continue working.
The NMG conference seeks to trigger debate and provide solutions to help widen the low pensions coverage.
Nation Media Group CEO Geoffrey Odundo makes his remarks at the East African Pensions Conference and Expo 2025 at the KICC, Nairobi, on October 23, 2025.
NMG Chief Executive Geoffrey Odundo highlighted the importance of financial literacy in boosting the coverage and preventing old-age poverty.
“Staying updated with financial tools and knowledge is not a luxury—it’s a necessity,” he said at the conference themed ‘Retirement Planning: Get Started Now! – Tujipange Mapema’.
“That gap between the industry’s potential and participation is exactly why we convened this conference,” he added.
Kenya’s pensions sector has grown significantly, with assets surpassing Sh2.3 trillion, signalling increased confidence in the system. Yet coverage remains low, especially among informal sector workers.
Visitors tour exhibition booths during the East African Pensions Conference & Expo 2025, held at the Kenyatta International Convention Center (KICC), Nairobi, on October 23, 2025.
According to the Retirement Benefits Authority (RBA), total pension assets stood at Sh2.25 trillion in December 2024—up from Sh476.8 billion a year earlier—driven by the implementation of the NSSF Act and growing financial awareness.
Still, only 19 percent of Kenya’s workforce actively contributes to a pension scheme.
Mr Cyrell Wagunda Odede, the Public Investments and Assets Management Principal Secretary, said that a dignified retirement is built by choice, not by chance.
“Too many Kenyans are working hard today with little assurance for tomorrow,” he said. “For a long time, our country lacked a retirement plan that reached those outside formal employment.”
To address the gap, the National Treasury has rolled out the Kenya National Entrepreneurs Saving Trust (KNEST)—a home-grown initiative targeting informal workers, micro-entrepreneurs, and the self-employed.
Registered by the RBA, the Trust allows flexible contributions starting from as little as Sh50, with no penalties for irregular payments—making it ideal for those with unpredictable incomes.
“KNEST is more than a pension plan—it’s a bridge between retirement security and financial empowerment,” said Mr Odede.
Nation Media Group (NMG) CEO Geoffrey Odundo (centre) cuts a ribbon to celebrate the Retirement Benefits Authority 25th anniversary at the East African Pensions Conference and Expo 2025 held at the KICC, Nairobi, on October 23, 2025.
Kenyans, on average, are living longer and the rank of the elderly poor is rising as the traditional social fabric yields to the forces of rapid urbanisation and changing social and family trends.
In the past, social security was not a bother to many Kenyans because there was a large extended family to fall back on in the rural areas. But as the social fabric changes and more people opt to retire in urban centres, the trend is increasingly becoming a headache to policymakers.
This is what prompted the State to start a monthly stipend of Sh2,000 for those above 70 years to cushion them from old-age poverty.
