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Everything You Need to Know About Pension  in Kenya


Having and creating a retirement plan is important. Pension in Kenya is vital as it helps to maintain and sustain the standard of living after retirement. You are able to cater to the basic needs, for example, food, housing, and medical needs. Also, it provides a safety net as you no longer have to monthly salaries or allowances, even more, no insurance benefits. You need to start saving up for retirement as soon as you start working. Below are some basics of pension in Kenya.

Who can save up for a Pension in Kenya?

Anyone above the age of 18 years that is employing people, has a business, or has disposable income is eligible to save for retirement. Both the National Social Security Fund(NSSF) and MOBIKEZA(Online pension platform) target the formal and informal sectors.

What are the different plans available?

There are different pension schemes in Kenya available to help you save up for retirement. Firstly, there is an occupational scheme. The scheme is registered by both the Retirement Benefits Authority and Kenya Revenue Authority. Secondly, there is the individual or personal pension schemes which are for those in the informal sector. Moreover, there are different insurance companies that have these schemes and you can easily look them up for more information.

How do I access my Pension in Kenya?

There are different ways in which you can be accessing your funds according to the scheme that you have been subscribing.

  • Employees under the occupational scheme, will be receiving their funds when they retire, resign, get terminated, move to another country, or when rendered unable to work due to medical issues.
  • Employees in the informal sector, funds can be anytime-either partially or a lump sum. It depends on the rules of the scheme registered.

Accessing pension in Kenya can be done even before retirement. You can access the funds, either full or partial withdrawal if you have a personal scheme. For the occupational scheme, you can only withdraw your funds but not in full before retirement. In addition, in the cases of medical emergencies and death, then next of kin or beneficiaries have full access to the funds.

How can one be paying Pension in Kenya?

Upon maturity, the pension funds are paid in a lump sum or monthly basis. The provident fund provides members with a cash lump sum and interest of the pension savings. On the other hand, upon retirement, you can have access to a third of the funds as a cash lump sum and the two-thirds is paid on a monthly basis.


Pension in Kenya is not that common and many people are yet to have retirement plans. Having knowledge of pension and what is expected when you get a pension scheme is important. As business owners and employers, get your employees and yourself set up for the future. Read more on pension and other related articles such as if statutory deductions offer any benefit and everything you need to know about PAYE.

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