By Robai Ludenyi
A new survey has revealed that many Kenyans who earn fifty thousand shillings or less per month are heading toward old age without any form of retirement savings. The report shows that a large portion of workers in this income group are not contributing to any pension plan and may face serious financial hardship once they are no longer able to work.
The study shows that workers who earn below thirty thousand shillings per month are the least prepared for retirement. Only a small number are putting aside any money for their future. Among those earning between thirty thousand and fifty thousand shillings, nearly half are also not saving for retirement. This trend is worrying because these workers make up a significant share of the national labor force.
Many workers say they struggle to save because most of their income goes toward immediate needs such as food, rent, school fees, and transport. The high cost of living continues to place pressure on households, leaving little or no room for long-term financial planning. Some people also assume that their children or extended family will support them in old age, but this traditional form of security is becoming less reliable as younger generations face their own economic challenges.
The report warns that without meaningful savings, many workers will retire into poverty, unable to afford essential needs, including food, medical care, and shelter. It encourages workers to start putting aside small amounts regularly, adding that even modest contributions can grow significantly over time.
The survey also calls on employers, pension providers, and financial institutions to create more flexible and affordable saving plans that are accessible to people with low and irregular incomes. According to the researchers, improved awareness and simpler products could help more Kenyans prepare for a financially secure retirement.
The author is Robai Ludenyi. Journalist and Media Innovator