This archive report was first published on 4 August 2019.
Kenya's pension scheme administrators are calling for a national conversation on a framework to support senior citizens, citing the need to rethink old age and its challenges.
According to Association of Retirement Benefits Schemes (ARBS) council member Jane Gitau, enabling the elderly to lead decent lives could transform the country into an attractive investment destination for old-age related services.
Ms Gitau emphasized the need for studies on the challenges faced by the elderly and creating avenues for them to continue serving the country.
"The elderly are experienced and could be consultants. But do we understand their needs, strengths and weaknesses that weigh down our economy?" she asked.
ARBS chairman Simon Nyakundi said the association is planning to hold a nationwide survey to understand the needs of the elderly and generate data to create insurance products that cater for them.
"Our work is to cater for their well-being. This is a time-bomb since the majority of Kenyans are either informal or contractual workers who have no access to pension savings schemes," Mr Nyakundi said.
He added that the Sh2,000 to Sh3,000 stipend given to the elderly cannot enable one live decently, hence the need for a national conversation.
"It is urgent since Kenya's social fabric is not intact. Young people no longer support their parents," he said.
Mr Nyakundi also highlighted the need for commercial products that support old-age decency, citing the government's Sh9 billion allocation for the welfare of Kenyans aged 70 years and above.
Studies by Zamara Group and Enwealth Financial Services found that even Kenyans enjoying a pension can hardly support the lifestyles they had during their working days.
According to the studies, a 75-80 per cent monthly replacement rate is recommended to enable individuals maintain the same standard of living in retirement, but many have no incomes, just extra expenses that make their lives more miserable.
