Kenya’s retirement savings rate is a concerning 17%, the lowest among East African countries. Data from the Kenya National Bureau of Statistics (KNBS) indicates that as of 2023, more than 13.9 million adult Kenyans lack any form of retirement savings. This paints a worrying picture of the state of retirement preparedness in the country.
Adding to the challenge is the income replacement ratio upon retirement, which stands at a mere 40%. This figure falls far below the recommended level of 75%, indicating that many retirees are facing significant financial challenges in their retirement years. The inability to replace a sufficient portion of their pre-retirement income leaves many retirees struggling to make ends meet and maintain their standard of living.
These statistics underscore the urgent need for improved retirement planning and savings strategies in Kenya. It is crucial for individuals to start saving for retirement early and explore options such as pension plans and other long-term savings vehicles. Additionally, there is a clear need for policy interventions to promote and facilitate retirement savings among the population, ensuring a more secure future for retirees.
