By John Mutiso
More than half of Kenyans earning below Ksh50,000 a month are not saving for retirement, raising the risk of old-age poverty, a survey by ICEA Lion Group shows.
Only 27% of those earning under Ksh30,000 and 55% of those between Ksh30,000 and Ksh50,000 contribute to pension schemes, compared to 56% of earners between Ksh50,001–100,000 and 89% of those earning over Ksh500,000.
As reported in the Business Daily, low pension uptake, especially in the informal sector, forces many retirees to continue working, with alternative savings mainly in SACCOs and fixed deposits.
Despite mandatory NSSF contributions, most retirees struggle with inadequate payouts.The trend reflects changing social structures, as traditional family support wanes in urban areas, prompting the government to provide a Ksh2,000 monthly stipend for citizens above 70 to mitigate old-age poverty.
