A Report by SanlamAllianz Says Kenyans Are Not Ready For Retirement—Here’s What That Means For You

Nyaguthii is a small business owner who uses mobile money for nearly everything. She makes sure to make her monthly contributions to her chama, SACCO, local kitty and personal savings. She also sends money back home to her ailing mother. One day, she sat up too fast to help a client select some clothes from her boutique but her knees made an alarming popping sound. The client laughed, relating. They shared ageing jokes and lamented about getting in years. As she was paying, the client casually asked Nyaguthii if she’ll still run the business after she retires.

It wasn’t something Nyaguthii thought about actively. Retirement felt like a faraway goal because she rarely had enough money to spare for retirement. Most programs required steady pension cuts from a salary but her income was too inconsistent to have a monthly cut. She explained this to the client, sharing that she doesn’t see herself ever retiring, perhaps only reducing her hours when her knees could no longer take retail hours. It was time to start to start thinking about retirement and her future once she changed her lifestyle once she started focusing on the sunset of her life.

Kenyans and the Path to Retirement

The inaugural 2026 SanlamAllianz Benchmark Report highlights the key findings about the retirement behaviours Kenyans are currently exhibiting. The Kenya Bureau of Statistics 2026 Economic Survey found that the GDP grew by 4.6% in 2025. Most new jobs in 2025 were in the informal sector. Agriculture remained the highest economic activity followed by transport and storage. There is noted growth in multiple sectors but many Kenyans aren’t experiencing financial reprieve. Seven out of ten Kenyans don’t believe they’re on track to comfortably retire.

The survey also found that most people find family costs to be the biggest barrier to creating retirement savings. Lack of a regular and/or high income makes it difficult to have regular pension deposits. This shows that retirements benefits shouldn’t entirely rely on a percentage taken from a monthly salary. Considering the rising cost of living, inconsistencies in pay for informal or gig sector workers, retirements benefits providers should have flexible measures that allow at-will deposits done via friendly methods such as mobile money.

Providers should also consider how civilians often have to prioritise other insurance responsibilities. Many Kenyans who are forced to choose between healthcare and pension prefer to focus on healthcare. Retirement savings also face the risk of being used before retirement during the transition period after job loss. Many also withdraw pension savings to use as an emergency fund.

For pension benefits to better serve Kenyans, the SanlamAllianz report states that retirement benefits should be a reliable income rather than only a lumpsum at the end of a career. Pensions shouldn’t result in a lifestyle downgrade but rather providing dignity, choice and financial confidence after a long career.

Key Findings of the SanlamAllianz Retirement Benchmark Survey

1. How affordability affects retirement savings

Most Kenyans can’t afford to save for retirement but are willing to. Many would also increase their retirement savings if possible. As mentioned earlier, income intended for retirement savings is consumed by family and household responsibilities.

SanlamAllianz Benchmark Survey Graph — SanlamAllianz Survey What prevents Kenyans from saving for retirement [SanlamAllianz}

2. Where retirement savings are spent before retirement

Leakage was a common theme in the lack of retirement savings for most Kenyans with the capacity to save. This is when savings are used during transition periods from job loss or business closures. Retirement savings compete with urgent priorities like school fees and debt repayments.

Survey on what happens to retirement savings after job loss or closing a business [SanlamAllianz}

Some transferred all or most of their savings. For those, most used it to support or start a business, deal with bills and emergencies. Some regretted this decision because they were forced to while others received little to no assistance about withdrawing their pension. To prevent leakage, some workers prefer if their pension can’t be accessed, only accessed in the event of an emergency. Some said they’d prefer to withdraw the full amount at their discretion.

3. The gap in retirement conversion

Many respondents stated they were prepared to save up for retirement but didn’t account for monthly expenses. There’s also a gap in retirement literacy where they were unaware of pension product jargon.

Survey on how much income is needed in retirement [SanlamAllianz}

Many respondents know what they want but this doesn’t match the product lingo of packages. Others also shared they have no money for healthcare post-retirement while the rest have no plan or have considered it but not started saving. Another group said they’d split their pensions between healthcare and daily living.

4. When Kenyans retire

Only 30% of retired respondents live comfortably off their retirement savings and other income. 88% still run businesses or work even when they have a sustainable retirement income. 67% cover their basic needs with their pensions.

5. The retirement systems in place

Formal workers rely on NSSF and company pension plans. Informal workers have multiple incomes from hustles or extra businesses. Kenyans thus prefer to use digital channels to save up.

Survey on how Kenyans save for retirement [SanlamAllianz}

Workers shared that they would prefer flexible systems that allow savings whenever money is available. They also prefer a retirement savings scheme that considers their inconsistent wages and remains trustworthy. Most respondents prefer a secure savings while others prioritised affordable entry prices.

What retirement security means

The SanlamAllianz head of corporate business, Jack Mwaura, stated that “a pension balance alone does not explain what someone can sustainably spend every month.” The survey found that only a small group knew what periodic income they’d need after retirement. Many people are unaware that their retirement balance may not sustain their lives post-retirement because they don’t know how to organise that. Therefore, retirement security needs coordination between a worker’s pension income, savings, investments, property and continued expenditure. Retirement security also means that a pension should provide financial flexibility. It should also adequately cover regular expenses and healthcare.

SanlamAllianz is placing itself as a yardstick for highlighting the best foot forward in retirement planning for Kenyans. They position themselves as a launching point for retirement services providers to ensure they capture the reality of working Kenyans. In their report they show that a reliable retirement system doesn’t just rely on how much money is collected but on how a pension holistically connects to the worker’s retirement savings.

Retirement requires consideration for the family unit. Black tax, obligations and emergencies shouldn’t empty a retirement savings account. 29% of respondents shared that financial support obligations reduce savings. Intergenerational family support includes:

Money, food and daily living costs
Healthcare
Caregiving
Housing support
Business, farming or income support

The dependency ratio between workers and their vulnerable relatives has been reducing. In 2025, reports found that for every 100 workers there were 65 dependants while the number was at 75 dependants for every 100 workers in 2015. However, this speaks to higher numbers of youth unemployment.

The “sandwich generation” boomers and Gen X have been enveloped in dual support systems where they support both elderly relatives and unemployed adult children. This bites into any savings accrued. Family insurance can cater for housing and healthcare for elderly relatives. However, there remains a gap for other support systems. Long-term care can also lead into dipping into retirement savings.

Workers consider leaving a legacy for their children but late life healthcare costs can jeopardise this. Retirement savings structures should consider these competing priorities. Kenyan family dynamics require a retirement scheme that can:

Build independent funds
Identify and address healthcare needs early
Establish family boundaries and call for open financial communication

The survey also found suitable mechanisms that take family matters into consideration such as family contribution products. This also includes transparency and accepting friendly systems like mobile money.

How much do Kenyans need to retire?

For Kenyans, this requires considering obligations other than post-retirement personal expenses. The retirement report found that most retirees wish they’d have saved more. Only 29% of working age respondents think they’re on track to a comfortable retirement. Many workers know to save but they don’t know what they’re saving towards.

The survey report finds these to be the best steps when planning for retirement:

Start with most important needs from essentials (housing, food, clothing, healthcare, transport) then comfort which includes personal cars, helping family and better healthcare, and finally leisure choices such as travel, hobbies, entertainment and charity.
Who is funding retirement? In Africa this means considering workplace pension plans, family funding, extra-retirement income.

A worker then applies the following measures to determine their retirements savings needs:

Replacement ratio: This is calculated from the retirement income needed.
Capital multiple: How many times the first annual income must be saved on the day of retirement to fund the pension needed.

In addition, calculate your retirement savings needs with the SanlamAllianz QR code:

You can scan the QR code besides and it will ask some questions such as when you plan to retire and your expected income. This can then be used as the launchpad to start planning your retirement with an advisor.

The SanlamAllianz report found that most pensioners want high investment returns while others value asset safety. High returns show that the retirement benefits provider is focusing on assured profits. Asset safety also shows the provider is trustworthy and has transparency. Retirement providers must thus balance the two.

Kenyan pension asset investments [Retirement Benefits Authority June 2026]

Investment plans are chosen depending a worker’s age gap to retirement. A 25-year-old can afford to take more investment risks and would focus more on growth assets. An older member focuses more on income and defensive assets.

The pension statement checklist

To know the progress of a pension, get a pension statement and ask the following questions:

Has the pension grown faster than inflation?
How much in returns is received after fees and expenses?
Is the portfolio diversified?
Is the investment strategy balanced between growth and capital preservation enough to meet retirement goals?

Having such insights helps Kenyan workers make better retirement choices. After the cut from a payslip, through investment choices and compounding, every deposit can transform into a meaningful retirement income.

Age trends

Younger workers are more likely to think they’re on track but the SanlamAllianz survey found that this relied more on vibes rather than proper targets. Gen Z and millennials also lost the most to digital scams. They have the most volatile working histories but set aside money for post-retirement medical costs.

Gen X and boomers face the highest amount of pressure. In this age group, buffers are thin with many respondents saying they could only cover household costs for two months or less without an income. This group also has the most discipline, transferring all their retirement savings when switching jobs. However, many haven’t set aside provisions for post-retirement healthcare.

Those who have already started retirement wish they could’ve saved more. Many also worried they’d need to lower their living standards. Healthcare is their biggest concern. When choosing a pension provider, trust is the biggest concern. 42% expected family support to supplement their pension.

General trends

The SanlamAllianz report found that majority of respondents would allow small amounts from sales, SACCOs, chamas or mobile money savings to be directly deposited into retirement savings. Many workers want a system that evolves to meet the daily income. They also want systems that account for unpredictable cash flows.

African Women and Retirement

For African women, retirement planning is a balancing act between present responsibilities and future concerns. The burden of care for extended family falls heavily on women. The competing demands on women such as childcare along with inconsistent income streams means women require flexible financial solutions. Women should be empowered to ask for financial support and still maintain their community roles with dignity.

Many Kenyan women rely more on SACCOs and chamas before they do banks. Historically, Kenyan women pooled money with their friends and would use a carousel system to determine who gets funding. 38% of Kenyan women prepare for retirement through SACCOs, chamas or self-help groups. 78% said they’d use money from these groups to deposit into a pension fund.

Women will keep working even after retirement because of their family and community responsibilities. Some consider taking a hiatus after work then returning to a more flexible work schedule such as consultancies or establishing self-run businesses. Retirement for women requires flexibility, access to insights and a provider that considers lived experiences.

Takeaway from the Report

The SanlamAllianz report concludes that pension providers need structures that support emergencies, fluctuating incomes and shocks to help Kenyans save long-term. They should also help workers feel supported when they have to survive retirement savings leakage.

Retirement statements should also help improve pension literacy by showing savings vs gaps. Providers should include all income sources to create trustworthy and flexible designs. Retirement readiness requires savings structures that are adaptable and stay accessible throughout a worker’s transitions.

This is why the SanlamAllianz pension plans are suitable for Kenyan workers. The following are the available plans.

SanlamAllianz Personal Pension Funds

Akiba Plus Personal Pension Investment Plan

The Akiba plus Personal Pension Investment Plan provides consistency, flexibility and confidence. It’s designed to fit your lifestyle and income flow. The fund comes with expert fund management and tax efficient strategies.

The Akiba Plus plan doesn’t require queueing. All you need to do is sign up digitally. You can begin growing your savings immediately. You can merge all your older pensions with no hassle. The expert team provides support every step of the way ensuring you don’t lack any insights when making your investment choices. The plan also helps you track old pensions you’ve lost track of.

The Akiba Plus plan can help you visualise your wealth growth and plan the lifestyle you want for your retirement. This helps you create a solid retirement target rather than relying on hope. Every contribution will get you tax relief.

The SanlamAllianz gives members a 14% net return. It also offers transparency, allowing you to track your portfolio in real time. You can also choose when to withdraw your fund and whether it’s a lumpsum or income drawdown. This program also allows you to manage your pension even when you move abroad.

Post-Retirement Medical Fund

SanlamAllianz also provides a post-retirement healthcare option. This plan is dedicated to ensuring you have a medical plan to ensure your pension income doesn’t get taken over by medical costs.

You can transfer 10% of your current pension to the Akiba Retirment Medical Plan free of charge. Experts at SanlamAllianz will also help you consolidate any unclaimed balances from previous employers.

This project helps reduce the hassle of retirement. You also get tax relief of up to Kshs 15,000 to help you save more for your retirement. You can use your retirement medical package to pay for hospital bills, prescriptions or insurance premiums. The fund is also useable abroad should you relocate.

Sign up at akibaplus.co.ke to start your retirement journey today.