Seven in every 10 working Kenyans are not ready for a comfortable retirement.
This is according to a Sanlam Allianz report, which also shows that 62 per cent of those interviewed cited supporting dependents as a key hindrance to saving for life after work.
Less than 40% of those interviewed say they could cover basic household costs for two months if their income stopped.
As of 2026, Kenya continues to enjoy the benefits of a young and vibrant demographic. A dividend that is now setting the scene for a looming retirement crisis and old age poverty, if the status quo persists.
According to the inaugural edition of the Sanlam Allianz Retirement Benchmark Report 2026, 70 per cent of salaried Kenyans are at risk of an uncomfortable retirement, with only 29 per cent of those surveyed being on track to a comfortable retirement.
"70 per cent of us are not retirement ready. That headline finding is important, but it should not be interpreted as a lack of awareness or interest in retirement planning. In fact, what the research pointed to us is something more nuanced," said Jacqueline Karasha, CEO of Sanlam Allianz Life Insurance.
"Kenya remains a relatively young country, but it reminds us that a demographic advantage does not last forever. If this year you’re X plus 1, next year you are X plus two, and it continues," noted Dr. Patrick Tumbo, Group CEO Sanlam Allianz.
The report highlights that affordability remains a key constraint for Kenyans, with many expressing the desire to save more, but are constrained by the financial room available.
Leakages have also been cited, with Kenyans reaching out to their savings when employment or businesses circumstances change.
"When people were asked what happens when money is tight, 55 per cent, which is more than half of the respondents, said they cut out on non-essential spending; others tried to earn extra income; others said they are borrowing to pay bills; when money is tight, some of us are even cutting back on basic needs," said Jack Marwa, Head of Corporate Business, Sanlam Allianz.
According to the report, the lack of saving for retirement points to a challenge that starts long before retirement, with household savings turning to emergency funds to support families navigating uneven income gaps.
"The respondents were asked why saving is difficult, and they said more than 4 in 10 said saving is difficult because of household and family costs," Marwa added.
This has seen 65 per cent of the respondents withdraw their retirement savings despite being fully aware of the consequences. 53 per cent, however, expressed regret after withdrawing their retirement savings.