Kenya’s Pension System Receives C Grade In First-Ever Global Pension Index Assessment

Kenya’s retirement income system received an overall C grade and a score of 53.1 in the 2026 Marsh CFA Institute Global Pension Index, with the inaugural assessment highlighting the need to strengthen retirement adequacy while building on existing strengths in pension system integrity.

Kenya is among three new retirement income systems included in the 2026 Index, alongside the Dominican Republic and Qatar. The addition brings the Index’s assessed systems to 55, covering more than 66% of the world’s population.

The Index assesses retirement income systems through three key dimensions of adequacy, sustainability and integrity. Kenya scored 38.9 (D) for adequacy, 53.0 (C) for sustainability and 76.0 (B+) for integrity, giving the country an overall score of 53.1 (C).

The results point to a significant disparity between the adequacy of retirement income and the integrity of the pension system. While Kenya’s B+ integrity score indicates a comparatively strong performance in areas relating to governance, regulation, protection and communication, the D score for adequacy highlights challenges in ensuring that retirement income is sufficient to meet people’s needs in retirement.

The findings come at a time when retirement systems globally are facing growing pressure from demographic and workforce changes. The 2026 Index’s special chapter examines the impact of aging populations on pension systems, noting that increasing life expectancy means people are spending longer periods in retirement. For Kenya, the report notes that life expectancy at age 65 has increased by 2.9 years since 1950, underscoring the importance of ensuring that retirement savings are sufficient to support longer lives.

Kenya’s inclusion in the 2026 Global Pension Index was facilitated through Octagon Africa’s strategic partner Alexforbes. Octagon Africa played a key role in responding to the Index survey and providing data and insights relating to Kenya’s retirement system. Octagon Africa’s Group CEO Fred Waswa, whose organisation helped to provide the local context, lauded the inaugural assessment of Kenya in the index, adding that it was an important opportunity for Kenya to take stock of our retirement systems.

“Kenya’s pension system continues to evolve, and the inclusion of the country in this index is an important benchmark to see where we stand and what needs to be done better. The findings allow us to have a more informed conversation about retirement adequacy, sustainability and the long-term financial security of Kenyans,” said Fred Waswa.

The Marsh CFA Institute Global Pension Index is the 18th edition of the Index, which has evolved from assessing 11 countries’ retirement income systems when it was first launched to 55 in 2026. The Index provides a comparative framework for examining retirement systems through adequacy, sustainability, and integrity.

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