Kenya’s Pension System Scores C Grade in First-Ever Global Index Assessment

Story by Maurice Momanyi

Kenya’s retirement income system has received an overall C grade, scoring 53.1 points in the 2026 Marsh CFA Institute Global Pension Index, with the assessment highlighting significant gaps in retirement income adequacy despite relatively strong performance in pension system integrity.

The inaugural assessment of Kenya’s pension system, released on October 22, 2026, gives the country an opportunity to evaluate the effectiveness of its retirement arrangements and identify areas requiring reforms to improve the financial security of retirees.

According to the report, Kenya scored 38.9 points, graded D, in adequacy; 53.0 points, graded C, in sustainability; and 76.0 points, graded B+, in integrity.

The findings reveal a significant gap between the strength of the country’s pension governance and its ability to provide retirees with sufficient income to meet their needs after leaving employment.

The adequacy score emerged as the weakest area, pointing to challenges in ensuring that retirement benefits and savings can adequately support Kenyans throughout their retirement years.

In contrast, the B+ score in integrity reflects comparatively stronger performance in areas such as governance, regulation, protection and communication within the pension system.

The report indicates that although Kenya has established important foundations for managing and protecting retirement savings, more attention is needed to ensure that those savings translate into adequate income for retirees.

Longer life expectancy raises retirement concerns

The assessment comes amid growing pressure on pension systems worldwide as populations age and people spend more years in retirement.

The 2026 Index examines how demographic changes, particularly increasing life expectancy, are affecting the ability of retirement systems to provide long-term financial security.

For Kenya, the report notes that life expectancy at age 65 has increased by 2.9 years since 1950, highlighting the need for retirement savings to last longer.

Longer lives mean retirees may need to finance more years outside formal employment, increasing the importance of sufficient contributions, effective pension management and sustainable retirement income arrangements.

The findings therefore place retirement adequacy at the centre of discussions on Kenya’s pension system, alongside the need to maintain the governance and regulatory safeguards reflected in its integrity score.

Octagon Africa welcomes Kenya’s inclusion

Kenya’s participation in the global assessment was facilitated through Octagon Africa’s strategic partner, Alexforbes.

Octagon Africa contributed to the process by responding to the Index survey and providing local data and insights on the country’s retirement income system.

Octagon Africa Group Chief Executive Officer Fred Waswa welcomed the assessment, describing it as an important benchmark for evaluating Kenya’s progress and identifying areas for improvement.

“Kenya’s pension system continues to evolve, and the inclusion of the country into this index is an important benchmark to see where we stand and what needs to be done better,” Waswa said.

He added that the findings would help promote a more informed national conversation on the adequacy and sustainability of retirement income.

“The findings give us an opportunity to have a more informed conversation about retirement adequacy, sustainability and the long-term financial security of Kenyans,” he said.

Waswa’s remarks underscore the importance of using comparative assessments to identify weaknesses in retirement arrangements and inform efforts to improve outcomes for pensioners.

Kenya joins 55 retirement systems in global index

Kenya is among three new retirement income systems included in the 2026 Marsh CFA Institute Global Pension Index, alongside the Dominican Republic and Qatar.

Their inclusion brings the total number of systems assessed to 55, covering more than 66 per cent of the world’s population.

Now in its 18th edition, the Index has expanded considerably since its launch, when it assessed the retirement income systems of just 11 countries.

The assessment compares pension systems using three main dimensions: adequacy, sustainability and integrity.

Adequacy examines whether retirement benefits can sufficiently support people’s needs, while sustainability considers the long-term viability of pension arrangements. Integrity assesses aspects of governance, regulation, protection and communication.

Kenya’s first assessment provides a baseline against which future performance can be evaluated as the country seeks to strengthen retirement outcomes for its workforce.