This archive report was first published on 19 November 2019.
Published on November 19, 2019, a survey by Actuarial Services East Africa (Actserv) revealed that less than 10% of pension schemes in Kenya provide sufficient benefits for retirees to live comfortably.
The survey, which covered 85 pension schemes, found that only 9% met the ideal level of income replacement ratio for members, which is between 66 and 75%.
Retirees in defined benefit schemes have it worse than their counterparts in contributory schemes, with only 6% of defined benefit schemes providing adequate levels of benefits.
Actserv's survey highlighted the need for pension schemes to improve investment returns and provide better education to members on wise use of their retirement benefits.
Many retirees in Kenya are forced to rely on their families for sustenance, especially when they have medical bills to foot, due to the inadequacy of their pension pay.
