Seven in 10 Kenyans Fear They Are Not Saving Enough for Retirement, Survey Finds

By Faith Wanza

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.

NAIROBI, Kenya, October 12, 2026 — Seven in 10 Kenyans believe they are not on track to achieve a comfortable retirement, with household expenses, irregular incomes and debt repayments emerging as major obstacles to long-term financial security, a new survey has found.

The inaugural SanlamAllianz Kenya Retirement Benchmark 2026 shows that although many Kenyans understand the importance of saving for retirement, competing financial demands often prevent them from building adequate savings.

The study, titled Kenya Before It Ages, also found that many workers lack clear retirement savings targets, while some who leave employment cash out their retirement benefits, later regretting the decision.

“Kenya has made remarkable progress in expanding financial access and inclusion. The next challenge is ensuring that financial participation translates into long-term financial security. 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 and Principal Officer of Sanlam Allianz Life Insurance (Kenya) Limited.

Household expenses undermine retirement savings

Household and family expenses were identified as the biggest barrier to retirement saving, cited by 44 per cent of respondents. Low or irregular income followed at 37 per cent, while 24 per cent pointed to debt repayments.

Only four per cent attributed their inability to save to a lack of understanding or trust in retirement products.

The findings further showed that 62 per cent of respondents said supporting dependants reduced the amount they could save. Meanwhile, 39 per cent said they could cover basic household expenses for only two months or less if their income stopped.

In the past year, 23 per cent of respondents reduced their savings or retirement contributions when money became tight. The proportion rose to 29 per cent among earners aged 20 to 39, highlighting the vulnerability of younger workers to financial pressures.

Many workers cash out retirement benefits

The survey also raised concerns about how workers manage retirement savings when leaving employment or business ventures.

Among respondents who had left a job or business while holding retirement savings, 53 per cent withdrew at least part of the money, while 26 per cent took the entire amount. Only 32 per cent retained or transferred their full savings.

About one-third used the money to start or support a business or farm, while 65 per cent said they understood the implications of cashing out their benefits at the time.

However, 53 per cent later regretted the decision, while one in five received no assistance when leaving employment.

Karasha said financial institutions had a responsibility to develop solutions that recognise the realities of people's lives.

“The findings show that most Kenyans understand the importance of saving for retirement, yet everyday financial pressures often compete with long-term goals. This is why preservation cannot rely on awareness alone,” she said, calling for improved guidance and easier ways for workers to preserve their savings.

Uncertainty over retirement income

The report also found that many working-age contributors lacked clear retirement plans, with one in five unaware of how much they had saved.

Only 29 per cent knew the monthly income they would need during retirement, while 45 per cent had never heard of income drawdown, a mechanism that allows retirees to access their pension savings gradually.

Despite this knowledge gap, 51 per cent wanted a guaranteed monthly income throughout retirement.

Medical expenses also emerged as a concern, with 53 per cent reporting that they had no funded plan to cover healthcare costs after retirement.

Notably, 88 per cent said they would continue working or operating a business even if their retirement income was sufficient, suggesting that employment and business ownership remain important considerations beyond financial necessity.

Jonathan Stachbury, Managing Director and Chief Executive Officer of Sanlam Allianz Investments Limited, said the next priority should be converting savings into a dependable source of income.

“Kenya has made significant progress in building a savings culture, but the next step is turning those savings into sustainable retirement income. Retirement security is ultimately not about the balance someone accumulates during their working years, but whether those savings can provide a reliable income throughout retirement,” he said.

Informal employment presents additional challenges

The survey also highlighted challenges associated with Kenya's changing employment landscape.

According to the report, the economy grew by 4.6 per cent in 2025, while the informal sector accounted for 87.2 per cent of new jobs, citing figures from the Kenya National Bureau of Statistics.

Among working respondents, 39 per cent said their earnings changed from month to month, while 51 per cent of informal workers preferred receiving payments through mobile money.

However, digital financial services also presented risks. Some 45 per cent of respondents said they had lost money or personal information through a digital financial scam, rising to 54 per cent among younger respondents.

The survey identified a trusted provider or regulator as one of the leading factors that would encourage respondents to adopt a retirement product.

Dr Nyamemba Patrick Tumbo, Group Chief Executive Officer of SanlamAllianz Kenya, said the country had an opportunity to strengthen retirement preparedness before demographic pressures intensified.

“Kenya has a rare advantage: time. As a relatively young country, we have an opportunity to strengthen retirement preparedness before demographic pressures become more pronounced,” he said.

He added that the benchmark would help measure progress, stimulate dialogue and support decisions aimed at improving retirement outcomes for future generations.

SanlamAllianz said it would repeat the benchmark annually to track changes in retirement preparedness.