Kenya has marked a major milestone in its social protection journey as the country celebrated the 25th anniversary of the Retirement Benefits Authority (RBA), with the government reaffirming its commitment to expanding pension coverage, strengthening regulation, and deepening long-term savings to secure dignity for workers after retirement.
The event, held at the Kenyatta International Convention Centre (KICC) in Nairobi, also hosted the Second Retirement Benefits Sector Convention, bringing together policymakers, fund managers, trustees, labour unions, pension administrators, and international partners to reflect on lessons learnt over 25 years and chart strategies for the future.
During the convention, the Cabinet Secretary (CS) for the National Treasury and Economic Planning John Mbadi praised the Authority for transforming Kenya’s pension industry from a small, fragmented system in the year 2000 to one of the most vibrant and fastest-expanding retirement benefits sectors in Africa.
In a speech read on his behalf by the Principal Secretary for Public Investment and Asset Management Cyrell Odede Wagunda, the CS commended RBA’s efforts in strengthening governance, improving transparency, safeguarding contributors’ savings, and promoting sector growth.
Further, the CS highlighted the remarkable growth of the pension industry, noting that total assets under management have increased from Sh40 billion in 2000 to Sh2.53 trillion as of June 2025.
Additionally, Mbadi emphasised that these savings were not only securing the retirement futures of millions of Kenyans but also providing critical long-term capital for national development projects, including roads, housing, energy, and manufacturing.
“These savings reflect the confidence Kenyans have in the pension system, and they serve as a foundation for sustainable economic growth,” he stated.
Mbadi also pointed out that pension coverage has expanded to approximately 26.5 percent of Kenya’s labour force, up from 13 percent in the year 2000.
However, coverage remains limited among informal sector workers, who constitute over 80 percent of the workforce and to address this, the CS urged adoption of micro-pension schemes, digital onboarding systems, and mobile money platforms to make participation easier.
On the other hand, he highlighted major government reforms that have strengthened long-term savings including the conversion of the Civil Servants Pension Scheme to a defined contribution scheme under the Public Service Superannuation Scheme, which has mobilised over Sh248 billion in under four years.
Likewise, he also commended the NSSF Act reforms, which increased contribution rates from a flat Sh400 to a progressive 12 percent, resulting in contributions growing from an average of Sh15 billion per year to over Sh70 billion.
“Pension funds are not just about retirement, they are a critical source of capital for national development,” the CS proclaimed, emphasising that accumulated savings are increasingly being channelled into infrastructure and other development projects.
Speaking at the event, RBA Chief Executive Officer (CEO) Charles Machira reflected on the Authority’s journey since its establishment in 2000.
“When the Retirement Benefits Authority was established, total assets under management were barely 41 billion Kenyan shillings. Today, they have grown to 2.53 trillion,” he narrated.
“Our goal is to ensure that all Kenyan workers live a dignified life in their retirement, and we remain committed to creating a collaborative and growth-oriented agenda for the sector,” added Machira.
Echoing the CS’s remarks, RBA Board Chairman Nelson Havi also spoke on the sector’s forward-looking strategies saying, “The successful achievement of our mission can only be demonstrated by robust growth, wide coverage, and vibrant product offerings”.
“We are committed to increasing pension coverage from the current 26 percent to 34 percent by 2029, leveraging digital transformation, financial literacy programs, and new technologies to protect members’ interests and strengthen the sector,” he reaffirmed.
Meanwhile, the convention provided a platform for industry stakeholders to discuss strategies for improving coverage, diversifying pension products, and enhancing the long-term sustainability of retirement benefits.
Attendees also explored global trends, including demographic shifts, evolving labour markets, and new financial technologies that are reshaping retirement planning.
Ultimately, the CS Mbadi reaffirmed the government’s commitment to supporting the retirement benefits sector in line with the recently adopted National Retirement Benefits Policy which prioritises expanded coverage, enhanced governance, adequacy of benefits, and consumer protection, ensuring dignity and financial security for all Kenyans in retirement.
By Samuel Kivuva
