By Vincent Ochoi
Retirement should be a time of peace, dignity, and fulfilment, a season where you finally reap the rewards of a lifetime of hard work. Yet for millions of Kenyans, retirement feels more like an approaching storm. With little to no savings, many face the harsh reality of financial dependence, stress, and poverty in old age.
This crisis is not in the distant future it is already here. According to data from the Retirement Benefits Authority (RBA), only 26% of Kenya’s 28 million working population have some form of pension coverage. That leaves nearly three out of every four Kenyans unprepared for life after work. The burden of care often shifts to children, relatives, or even well-wishers, many of whom are already overstretched.
So why are Kenyans not saving for retirement? And more importantly, what can we do about it?
The Myths That Cost Us Our Future
One of the biggest barriers to retirement saving is the belief that it’s only for the wealthy or the formally employed. Many assume they need a high income to start saving. Others delay, thinking they will begin once their financial situation improves. Some believe their children will support them in old age, as culture often dictates.
But times have changed. Life expectancy in Kenya is rising, families are becoming smaller, and the cost of living continues to increase. There is no small amount when it comes to long term savings, and the earlier you begin, the more secure your retirement will be. Thanks to the power of compound interest, even modest, regular contributions made consistently over time can grow into a meaningful retirement fund.
Retirement Planning is for all, not just the salaried few. While employer-sponsored pension schemes are valuable for those in formal employment, a growing number of Kenyans are in the informal sector or self-employed. For these millions, traditional pension plans may feel out of reach. But solutions exist.
Personal Retirement Schemes (PRS) are specially designed to meet the needs of individuals outside formal employment. Whether you’re a boda boda rider, a mama mboga, a jua kali artisan, a teacher in a private school, or a small business owner, these flexible plans allow you to save what you can, when you can. With contributions starting as low as KES 500, these schemes are opening doors to retirement security for more Kenyans than ever before.
Additionally, small and medium enterprises (SMEs) that may not be able to set up full pension schemes for their staff can register as contributing employers to these individual schemes allowing their workers to enjoy the same long-term benefits.
We need to build and embrace a culture of financial preparedness. Addressing Kenya’s retirement crisis requires more than just products it demands a change in mindset. We must start by normalizing financial literacy from a young age and across all sectors. Retirement planning should not be something we think about in our 50s; it should be a routine part of life in our 20s and 30s.
Financial institutions, employers, government agencies, and community groups all have a role to play. But most importantly, every individual needs to embrace a culture of saving today for a better tomorrow.
Ask yourself: Do I want to work forever? Will I have enough to live comfortably when I stop working? If I were unable to work today, how would I survive? These questions are not meant to alarm you they are meant to inspire action.
There is a reward awaiting those who plan for their retirement early. Imagine reaching retirement without fear or anxiety. You wake up not to chase income, but to enjoy life traveling, spending time with family, volunteering in your community, or even pursuing passions you put off for years. That kind of retirement is not a fantasy. It’s achievable, but only if you start planning today.
“The best time to plant a tree was 20 years ago. The second-best time is now. ” Your future is not something to fear it is something to prepare for. Enroll in a retirement plan. Save a little each month. Encourage your friends and colleagues to do the same. Let’s create a movement where retirement is not a burden on others, but a celebration of life.
Let’s choose dignity. Let’s choose independence. Let’s choose to retire with peace.
About the Author
Vincent Ochoi is the Head of Corporate Business at CIC Life Assurance
