ICEA LION Group has launched a digital tool to help Kenyans assess their financial readiness for retirement, alongside a national Retirement Preparedness Index (RPI) that shows most of the population is underprepared for post-work life.
The dual launch, which included the personal Retirement Preparedness Calculator and the RPI, aims to provide data-driven, personalised solutions for retirement planning in Kenya.
Additionally, the RPI survey, which sampled 1,300 working and retired individuals, found that only 29 percent of Kenyans believe their current pension savings will be adequate, despite 57 percent actively contributing to a scheme.
Speaking during the launch, ICEA LION Research Lead, Jacqueline Ochieng, noted that the initiative responds to critical gaps in retirement planning.
“Our study showed that while many Kenyans are saving, they are saving in the dark. They do not have a clear picture of what they will truly need to live comfortably after retirement,” Ochieng revealed.
According to the research leader, the survey highlighted stark disparities between the formal and informal sectors, with pension participation at 76 percent for formal employees compared to just 33 percent among informal workers.
She reported that confidence in retirement savings was low, even among retirees, with half reporting that their pension funds are insufficient to meet post-retirement needs.
Further, Ochieng disclosed that healthcare costs emerged as a major burden, with 30 percent of retirees spending between 11 and 20 percent of their income on medical expenses, while supporting dependents, including school fees, was another significant financial challenge.
The personal Retirement Preparedness Calculator, she claimed, allows users to input their financial information and retirement goals to generate a personalized score and guidance on improving their preparedness. The tool transforms abstract data into practical insights for individuals
“This is not just about highlighting a problem. It is about giving each Kenyan a mirror to reflect on their own situation and a roadmap for what they can do to improve it,” the research leader said.
Concurrently, the initiative received strong support from the Retirement Benefits Authority (RBA) Chief Executive, Charles Machira, who commended ICEA LION for leveraging technology to advance pension literacy and coverage.
“Empowering individuals with knowledge is the first step towards fostering a robust savings culture. Tools like this will help Kenyans make informed choices about their future,” stated Machira in a speech read on his behalf by Director, Market Conduct, and Industry Development at RBA Tom Kiptanui.
Machira also underscored the significance of the survey’s findings on healthcare costs, which support the RBA’s push for post-retirement medical funds.
He at the same time highlighted recent government incentives, including the increased tax-exempt pension contribution limit of Sh30,000 per month, as key enablers for personal retirement planning.
“The combination of education, technology, and favourable policy is critical if we are to improve retirement outcomes for all Kenyans,” he affirmed.
Meanwhile, the firm’s initiative was welcomed by stakeholders present at the launch, who emphasised the importance of innovation in addressing Kenya’s retirement savings gap. “This kind of research-backed, practical solution is exactly what the country needs,” said one industry expert.
The launch signals a shift towards customer-centric, technology-driven solutions in the pension sector, with the potential to improve financial literacy, boost savings culture, and enhance the overall financial security of Kenyans as they prepare for life after work.
by Samuel Kivuva
