Seven in 10 Kenyans say they are not on course for a comfortable retirement, with household costs, irregular incomes and early withdrawals of pension savings eroding their nest eggs.
The inaugural SanlamAllianz Kenya Retirement Benchmark shows the problem is not a lack of awareness but stretched budgets, savings that leak out when people change jobs and little clarity on what income their savings will eventually buy.
Household and family costs are the biggest barrier to saving, cited by 44 per cent of respondents, followed by low or irregular income at 37 per cent and debt repayments at 24 per cent.
Only four per cent blame a lack of understanding or trust in retirement products.
Some 62 per cent say supporting dependants cuts what they can set aside, while 39 per cent could only cover basic household costs for two months or less if their income stopped today.
In the past year, 23 per cent dipped into savings or cut retirement contributions when money was tight, rising to 29 per cent among earners aged 20 to 39.
“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,” said Jacqueline Karasha, chief executive of Sanlam Allianz Life Insurance (Kenya).
The survey found that among those who left a job or business while holding retirement savings, 53 per cent withdrew at least part of the money and 26 per cent took everything.
Only 32 per cent kept or transferred the full amount, while a third used the cash to start or support a business or farm.
Yet 65 per cent said they understood the consequences at the time, and 53 per cent later regretted the decision. One in five received no guidance at all when they exited.
“As an industry, we have a responsibility to make it easier for people to stay invested, provide relevant guidance when key decisions arise, and design solutions that reflect the realities of people’s lives,” Ms Karasha said.
Savers in the dark on retirement income
The study also points to a gap between saving and planning for life after work.
One in five working-age contributors do not know how much they have saved, and only 29 per cent know the monthly income they will need in retirement.
Some 45 per cent had never heard of income drawdown, yet 51 per cent want a guaranteed monthly income for life. More than half, 53 per cent, have no funded plan for medical costs after retirement.
“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,” said Jonathan Stichbury, managing director and chief executive of SanlamAllianz Investments.
Notably, 88 per cent of respondents said they would keep working or run a business even if their retirement income was sufficient.
The findings come against the backdrop of a labour market dominated by informal work. Kenya’s economy grew 4.6 per cent in 2025, but the informal sector accounted for 87.2 per cent of new jobs, according to the Kenya National Bureau of Statistics’ 2026 Economic Survey.
Among working respondents, 39 per cent say their earnings change from month to month, and 51 per cent of informal workers would prefer to make contributions via mobile money.
The shift to digital channels, however, carries risk. Some 45 per cent of respondents have lost money or personal information to a digital financial scam, rising to 54 per cent among younger respondents.
A trusted provider or regulator ranked as the top feature that would draw them to a retirement product.
“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,” said Patrick Tumbo, group chief executive of SanlamAllianz Kenya.
The benchmark is based on an online survey of 300 Kenyans, including earners aged 20 to 64 and retirees. SanlamAllianz says the findings are indicative rather than nationally representative, and plans to repeat the study annually.
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