Experts Urge Kenyans to Rethink Retirement: “Children Are Not a Pension Plan”
Nairobi, October 3, 2025 — Financial experts are warning Kenyans against relying on their children for financial support in old age, urging citizens to start saving early and take advantage of available pension products to secure a dignified retirement.
Speaking during the 3rd East African Pensions Expo and Conference in Nairobi, held under the theme “Retirement Planning: Get Started Now,” industry leaders and policymakers called for urgent measures to address Kenya’s low pension coverage and the growing risk of old-age poverty.
Despite pension assets rising to Ksh2.25 trillion by December 2024, only 19 percent of Kenya’s workforce actively contributes to a pension scheme, leaving over 80 percent without retirement protection. This gap persists even as the country’s life expectancy rises to 67 years, leaving retirees with about seven years of living expenses to cover without regular income.
Michael Kagika, Director of Pensions at the National Treasury, said that a comfortable retirement requires deliberate and consistent saving. “While pension assets have grown to over Ksh2.5 trillion equivalent to 15.2 percent of the GDP inclusion remains low, particularly among small and medium-sized enterprises,” he said.
Calvince Onduru, Deputy Managing Director at Equity Life Assurance Kenya (ELAK), cautioned against viewing children as a safety net in old age. “There are people who invest in their children as a retirement plan, only to be disappointed in their 20 to 30 years of post-work life,” he noted. Onduru likened retirement planning to the baobab tree that stores water in wet seasons to sustain itself during drought, emphasizing that financial literacy and digital access can help bridge the pension gap.
Equity Life Assurance showcased its tailored pension solutions targeting the informal sector, which represents 83.7 percent of total employment but remains largely excluded from formal pension systems. The insurer recorded a 58 percent growth in gross written premiums to Ksh3.8 billion in 2025, with total assets up 28 percent to Ksh28.6 billion.
Geoffrey Odundo, CEO of Nation Media Group, echoed the call for early planning, warning that many Kenyans start saving too late. “People take pensions seriously only five years before retirement, when it’s too late to change their financial path,” he said.
Meanwhile, Lazarus Keizi, Director of Research at the Retirement Benefits Authority (RBA), underscored the need for pension portability to prevent premature withdrawals when changing jobs. “The goal is dignity in retirement,” he emphasized.
Experts concluded that collaboration among policymakers, industry players, and citizens is vital to close the pension gap, citing initiatives such as the Kenya National Entrepreneurs Saving Trust (KNEST) that allows informal workers to save from as little as Ksh50.
