Whilst the Kenyan pension sector is the biggest in the region, we are yet to exploit its full potential as the penetration rate remains just about 20 per cent of the working class in both formal and informal sectors.

Apart from the mention of the registration of The Kenya National Entrepreneurs Savings Trust (KNEST) during the 2022/2023 budget, a government-backed pension scheme for informal workers, there were no other proposals directed towards accelerating the development of the pension sector.

There is an urgent need for reforms in the pension industry in order to enable more Kenyan citizens save adequately for retirement.

The government needs to review the pension preservation rule under the Retirement Benefits Authority regulations which allows partial withdrawal of both employer and employee accumulated benefits, currently at 50 per cent, which has over the years been a hindrance to the growth of this sector.

When people shift jobs from one employer to another, the tendency has been to access the accumulated benefits from the schemes, yet these funds are meant to cater for them after their retirement age.

As a result, many people end up retiring with very little accumulated benefits that are hardly enough to maintain their lifestyle during the post-retirement years.

This situation has forced a number of retirees to look for odd jobs and has also led to increased mental health issues among our senior citizens.

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