Kenya’s pension sector stakeholders have renewed calls for sweeping reforms to widen retirement savings coverage, strengthen compliance, and rebuild public confidence in pension systems.
Speaking during the Zamara 2025 Pension Convention in Mombasa themed “Disrupting for Impact: Transform, Integrate and Sustain”, the Chairperson of the National Assembly’s Finance and National Planning Committee, Kimani Kuria, said recent legislative amendments including the Tax Amendment Act 2024 and Finance Act 2025 have introduced incentives to encourage Kenyans to save for retirement.
However, Kuria, who is also the Molo MP, lamented that while formal sector workers enjoy structured schemes, nearly 80 per cent of Kenyans in the informal economy remain excluded, exposing millions to financial insecurity in old age.
“The pension industry must design flexible products that meet the needs of informal workers like boda boda riders, traders, and digital creators,” he said, urging prompt pension payments to build trust among savers.
Kuria lauded the Public Service Superannuation Scheme (PSSS) launched in 2022 for improving accountability through shared contributions between government and employees, ensuring retirees receive benefits faster. He revealed that automation has streamlined pension processing, enabling retirees to get their first payments within a month of leaving service.
To curb non-remittance of contributions, Kuria disclosed that amendments to the Public Finance Management Act have made it a criminal offence for accounting officers who fail to remit deductions a step meant to safeguard workers’ retirement funds.
Zamara Group Executive Director James Olubayi said the annual convention provides a platform for innovation and collaboration across the retirement ecosystem, focusing on how technology, governance, and data can strengthen pension systems.
Retirement Benefits Authority (RBA) CEO Charles Machira identified delayed remittances as the industry’s biggest threat, revealing that as of September, Ksh65 billion in pension contributions remained unremitted, mostly by public institutions and county governments.
“We have proposed legal changes to allow KRA to freeze accounts of employers who fail to remit pension deductions,” Machira said, adding that such negligence must attract personal liability.
Machira emphasized the need to expand voluntary savings and increase participation from informal sector workers, saying a stronger pension system will ease dependency and support financial stability for future generations.
