What does the Retirement Benefits Authority (RBA) want?
The Retirement Benefits Authority (RBA) as part of policy proposals is seeking to block early access to retirement benefits before the age of 50 by amending occupational, umbrella and individual scheme regulations removing clauses allowing the early access to the savings.
Why does the RBA want to block under 50s’ from accessing benefits?
The proposal, which could likely be part of the Finance Bill, 2025 aims to promote the adequacy of retirement savings for members of pension schemes.
The RBA notes that the increasing life expectancy and low savings rate among Kenyans, combined with the early access to benefits has reduced the income replacement ratio for members upon retirement.
Why age 50?
While the official retirement age is largely seen as age 60, current laws permit early retirement and set the threshold of the early departure from employment at age 50.
By blocking members from accessing retirement savings before age 50, the RBA wants pension benefits to only be utilised after reaching the allowable retirement age.
How can I currently access my pension benefits before retirement?
Current occupational, umbrella and individual pension schemes allow for early access to retirement benefits on three conditions with the first being loss of employment through redundancy.
A worker fired can also apply to access up to 50 percent of their personal contribution irrespective of their age.
Workers can also tap 50 percent of their contributions upon changing jobs by exiting their former employer’s pension scheme.
Can I partially access part of my pension benefits before attaining retirement?
No. Early access to pension benefits is not mandatory. As such, workers who exit employment through redundancy or being fired can wait to access their benefits upon reaching the retirement age.
Workers who change employers can meanwhile transfer their pension benefits from their ex-employee scheme to the new employer’s scheme or opt for an individual private pension scheme (IPP).
Do my pension benefits include contributions to the National Social Security Fund (NSSF)?
Yes. Contributions to the State-run fund also count as the NSSF qualifies as a pension scheme hence subject to the same rules and regulations including access to benefits.
What if I fall sick or become disabled, must I wait for age 50 to collect my benefits?
If a member becomes incapacitated on the grounds of ill-health to the extent that this occasions their retirement, a worker/ pension scheme member can opt for the payment of their total contributions and accrued benefits before attaining their retirement benefits.
Equally, when a worker intends to move from Kenya without the intention of returning, such a member can apply for the payment of their retirement benefits.
Is there any other caveat allowing me to access my pension benefits early?
The RBA is proposing to leave some window of accessing pension benefits before retirement by allowing 100 percent access to additional voluntary contributions (AVCs) made by members.
The pool additional contributions are, however, lower than mandatory contributions meaning members accessing the surplus contributions would still have adequate retirement benefits available upon leaving employment.
What’s the state of finances for retired workers in Kenya?
Pension surveys by the RBA and official data uncovers difficulties faced by retirees from inadequate savings upon retirement.
For instance, more than 80 percent of senior citizens have had to work for basic items.
Previous data from the Kenya National Bureau of Statistics (KNBS) showed that 708,902 of 869,228 persons aged 60 and above were in active employment, representing an 81.5 percent share of senior citizens in the country.
The latest pension survey released in February 2025 by the RBA meanwhile shows that more than half of retirees or 57 percent deemed their retirement savings as inadequate.
The inadequacy of pension benefits in the past prompted the government to start a monthly stipend for persons aged 70 and above to cushion them from old-age poverty.
