Study: Seven in 10 Kenyans unprepared for comfortable retirement

Seven in 10 Kenyans are not on track for a comfortable retirement, with household expenses, irregular incomes and premature withdrawals of savings undermining efforts to secure their financial future, a new study has found.

The inaugural SanlamAllianz Kenya Retirement Benchmark, released in Nairobi on Monday, found that despite widespread awareness of the importance of retirement planning, many Kenyans struggle to translate that knowledge into long-term financial security.

The study, themed Kenya Before It Ages, found that family and household expenses were the biggest obstacle to retirement savings, cited by 44 per cent of respondents. Low or irregular incomes followed at 37 per cent, while 24 per cent blamed debt repayments.

About 62 per cent said supporting dependants reduced their ability to save, while 39 per cent could meet basic household expenses for only two months or less if their income stopped.

“Retirement should be a stage of life that offers dignity, independence and choice, not one where people are forced to scale back their ambitions,” said Jacqueline Karasha, chief executive officer of Sanlam Allianz Life Insurance (Kenya).

From left: Jonathan Stichbury, Managing Director and Chief Executive Officer, SanlamAllianz Investments Limited; Jacqueline Karasha, Chief Executive Officer and Principal Officer, Sanlam Allianz Life Insurance (Kenya) Limited; and Dr Nyamemba Patrick Tumbo, Group Chief Executive Officer, SanlamAllianz Kenya, at the launch of the inaugural SanlamAllianz Kenya Retirement Benchmark Report 2026, "Kenya Before It Ages", in Nairobi on 12 October 2026. The study found that seven in 10 Kenyans are not on track for a comfortable retirement. /HANDOUT

The findings also revealed widespread leakage of retirement savings when workers leave employment or businesses.

Among respondents who exited a job or business with retirement savings, 53 per cent withdrew at least part of their funds, with 26 per cent cashing out everything. Only 32 per cent preserved or transferred their entire savings.

Although a third used the money to start or support businesses and farms, 53 per cent later regretted withdrawing their savings. One in five received no assistance when leaving employment.

“The findings show that most Kenyans understand the importance of saving for retirement, yet everyday financial pressures often compete with long-term goals,” Ms Karasha said, calling for better guidance and solutions that help workers preserve their savings.

The report further found that retirement planning remains disconnected from the income people will eventually need.

One in five working-age contributors did not know how much they had saved, while only 29 per cent knew the monthly income required during retirement. Additionally, 53 per cent had no funded plan for medical expenses after leaving employment.

SanlamAllianz Investments chief executive Jonathan Stichbury said retirement security depended on turning accumulated savings into sustainable income throughout old age.

Meanwhile, 45 per cent of respondents said they had lost money or personal information through digital financial scams, with the proportion rising to 54 per cent among younger respondents.

The findings come as Kenya's informal sector accounts for a significant share of employment, with 87.2 per cent of new jobs created in 2025 coming from the sector, according to the Kenya National Bureau of Statistics.

SanlamAllianz Kenya group chief executive Nyamemba Patrick Tumbo said the country's relatively young population presented an opportunity to strengthen retirement preparedness before demographic pressures intensified.

The company said it would repeat the benchmark annually to monitor progress and inform efforts to improve retirement outcomes.