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| Caotion: Jacqueline Karasha (centre), Jonathan Stichbury (left) and Dr Nyamemba Patrick Tumbo (right) examine the SanlamAllianz Kenya Retirement Benchmark Report 2026 during its launch in Nairobi on October 12, 2026. |
Many Kenyans risk entering retirement without sufficient savings to sustain their livelihoods, as family obligations, unstable earnings and limited financial planning continue to undermine long-term financial security.
A new study by SanlamAllianz Kenya shows that seven in 10 Kenyans are not on track for a comfortable retirement, exposing gaps in how workers prepare for life after employment.
The SanlamAllianz Kenya Retirement Benchmark 2026, released in Nairobi on Monday, found that 44 per cent of respondents struggled to save because of household and family expenses, while 37 per cent cited low or irregular earnings and 24 per cent pointed to debt repayments.
The findings suggest that retirement preparedness is being undermined by competing financial demands, even among people who understand the importance of saving.
Sanlam Allianz Life Insurance (Kenya) Limited Chief Executive Officer and Principal Officer Jacqueline Karasha said the country needed to focus on converting financial inclusion into lasting economic 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,” she said.
The pressure is particularly evident among households supporting dependants. According to the study, 62 per cent of respondents said family responsibilities reduced their ability to save, while 39 per cent could sustain basic household expenses for no more than two months if their income stopped.
Financial difficulties also forced some workers to draw on their savings. About 23 per cent of respondents had withdrawn savings or reduced retirement contributions in the preceding year, with the figure rising to 29 per cent among earners aged 20 to 39.
The study further raised concerns over what happens to retirement benefits when workers leave employment or close businesses.
Of those who left a job or business while holding retirement savings, 53 per cent withdrew some of the money, while 26 per cent took the entire amount. Only 32 per cent retained or transferred their full savings.
A third of those who withdrew their money used it to establish or support a business or farm, illustrating how retirement funds can become a source of immediate capital when other financing options are limited.
However, 53 per cent of respondents who made withdrawals later regretted the decision, despite 65 per cent saying they understood its implications at the time. One in five said they received no assistance when leaving their employment or business.
Karasha said retirement security required measures that helped workers protect their savings when making important financial decisions.
She noted that awareness alone was insufficient where people faced immediate financial demands, calling for accessible guidance and retirement solutions that reflected different income patterns and circumstances.
The report also identified gaps in planning for retirement income. One in five working-age contributors did not know the amount they had accumulated, while only 29 per cent knew how much monthly income they would need after retiring.
Additionally, 45 per cent had never heard of income drawdown, a method of accessing retirement savings through regular withdrawals. Nevertheless, 51 per cent expressed a preference for guaranteed monthly income throughout their retirement.
Medical expenses present another challenge, with 53 per cent of respondents lacking a funded plan to meet healthcare costs after leaving work.
SanlamAllianz Investments Limited Managing Director and Chief Executive Officer Jonathan Stichbury said retirement planning should focus on ensuring accumulated savings could provide a dependable income over time.
“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.
The study also examined the implications of Kenya’s changing employment patterns for retirement savings.
Data from the Kenya National Bureau of Statistics (KNBS) 2026 Economic Survey shows that the economy grew by 4.6 per cent in 2025, with the informal sector accounting for 87.2 per cent of new jobs.
Within the benchmark, 39 per cent of working respondents reported fluctuating monthly earnings, while 51 per cent of informal workers preferred to make retirement contributions through mobile money.
The growing use of digital financial services, however, has exposed consumers to fraud. The report found that 45 per cent of respondents had lost money or personal information through digital financial scams, rising to 54 per cent among younger participants.
A trusted financial provider or regulator was the most sought-after feature when respondents considered retirement products.
SanlamAllianz Kenya Group Chief Executive Officer Dr Nyamemba Patrick Tumbo said the country’s relatively young population provided an opportunity to strengthen retirement preparedness before demographic pressures intensified.
He said the annual benchmark would help track progress, encourage discussions on retirement planning and inform decisions aimed at improving financial outcomes for future generations.
The inaugural study surveyed 300 Kenyans online, including income earners aged 20 to 39, those aged 40 to 64 and retirees. The company cautioned that the findings were indicative and should not be treated as nationally representative.
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