Nation Media Group CEO and Managing Director Geofrey Odundo speaking at the 3rd East African Pensions Expo and Conference held in Nairobi.
Financial experts are warning Kenyans to rethink the long-held belief that children will provide for them in old age, urging citizens instead to take personal responsibility for their retirement.
With Kenya’s life expectancy now at 67 years, retirees face an average of seven years of post-work life to sustain themselves without regular income. Yet, despite pension assets growing to KSh2.25 trillion as of December 2024, only 19% of Kenya’s workforce is actively contributing to a pension scheme leaving more than 80% of workers uncovered.
These concerns dominated discussions at the 3rd East African Pensions Expo and Conference held in Nairobi under the theme “Retirement Planning: Get Started Now.” The forum brought together policymakers, insurers, and pension industry players to address Kenya’s growing retirement crisis and the persistent exclusion of informal and SME workers from pension systems.
Planning, Not Dependence, Is the Key to Dignity in Retirement
Director of Pensions at the National Treasury, Michael Kagika, stressed that a dignified retirement cannot be left to chance.
“While pension assets have grown to over KSh2.5 trillion, representing 15.2% of Kenya’s GDP, inclusion remains very low,” he said. “SMEs and informal workers are still largely excluded, and many people simply neglect to save for their future.”
Calvince Onduru, Deputy Managing Director at Equity Life Assurance Kenya (ELAK), echoed that message, warning against the cultural norm of viewing children as a financial safety net.
“There are people who invest in their children as their retirement plan, only to face disappointment in their 20 to 30 years of post-work life,” Onduru said.
He likened retirement saving to a baobab tree, which stores water in the rainy season to survive long dry spells and still gives back to the community.
“Retirement is not an event it’s a journey,” he said. “That journey begins the moment we earn our first shilling.”
Onduru emphasized the need for financial literacy, digital inclusion, and trust in pension systems, calling for products that serve both formal and informal workers.
Pension Players Expanding Access
At the conference, Equity Life Assurance showcased its commitment to expanding pension access through tailored retirement products for employees, SMEs, and informal workers who together make up 83.7% of Kenya’s total employment but remain largely outside formal retirement systems.
In 2025, the insurer reported 58% growth in gross written premiums to KSh3.8 billion, and a 28% rise in total assets to KSh28.6 billion, a sign of increasing uptake of its affordable pension solutions.
Start Early, Avoid Risky Bets
Geoffrey Odundo, CEO of the Nation Media Group, also urged Kenyans to start saving early not in their 50s when retirement is just around the corner.
“People don’t take pensions seriously until about five years to retirement, which is usually too late to change the course of the future,” he said.
Odundo advised retirees to avoid investing their pension payouts in risky ventures, instead choosing safer options such as annuities or structured pension plans.
“When you retire, your phone goes silent,” he remarked wryly. “Buy an annuity or join a pension club for social connection. Stay active, do what you enjoy, and keep your mind and body engaged.”
Reforms and Solutions on the Horizon
Lazarus Keizi, Director of Research, Strategy, and Planning at the Retirement Benefits Authority (RBA), pointed to pension portability as a key reform area.
“Many people deplete their savings when they change jobs,” he said. “We need systems that allow workers to carry their pensions with them, so they can retire with dignity.”
To close the pension gap, policymakers are promoting flexible contribution schemes like the Kenya National Entrepreneurs Saving Trust (KNEST) under the National Treasury.
KNEST allows informal workers to save as little as KSh50, making retirement saving more accessible to millions.
As Kenya’s population ages and traditional family structures evolve, experts say the message is clear: children are not your retirement plan.
True financial security, they insist, begins with early, consistent, and informed saving one payslip at a time.
