Most Kenyans may retire into poverty due to insufficient pension savings as a large portion of the adult population lacks a pension scheme. During the launch of the CPF Foundation which seeks to reach and empower over 500,000 vulnerable older persons, it emerged that a good number of senior citizens are not financially prepared for retirement.

A majority of Kenyans, especially in the informal sector rarely invest in pensions. As a result,  many of them reach the retirement age without any pension, leaving them exposed to financial hardships and dependence.

Speaking during the launch of the foundation, Wycliff Ouma, National Project Coordinator at International Labour Organisation (ILO) emphasised that even at old age, every Kenyan should be able to have adequate resources to sustain a dignified and quality life.

“In Kenya 2.5 million people are above the age of 60, and it is projected that this number will rise to about 10.5 per cent by 2050. This is a wakeup call for all of us, even the young people to start saving as early as possible in preparedness for the coming old-age days which is inevitable,” he said. At the same time, Ouma called on the government to provide social protection safety nets that will ensure senior citizens live a dignified life when they retire.

He said currently, when you look at the commitment of the government on social protection, and this is of course not just for the old people, it’s about 3.5 per cent of the gross domestic product (GDP).

“And we are seeing that that is still very low, so we are looking at how this can be moved to the international average of 10 per cent of the GDP, to be able to bring these people in all the brackets that can be able to support,” added Ouma. He further noted that the government needs to start planning early to ensure the country has enough disposable resources to be geared towards the support of the old persons.

Hosea Kili, CPF Group Managing Director and CEO also acknowledged that the government and policymakers have gone slow in advocating for both financial and best interests of age and society at large. However, he lauded the proposed 2025 Finance Bill which looks to have tax free pensions and gratuity.

“The only thing is that there are not many people, actually, who are saving for retirement. So, I think now that there is going to be total exemption, I want to ask all of you young people, kindly save for your own retirement.  It is coming nearer than you would think,” Kili stressed.

The launch was part of CPF’s strategic commitment to addressing the growing needs of vulnerable older persons through social and economic empowerment, age-friendly services, and policy advocacy.