The Retirement Benefits Authority (RBA) is considering a "two-pot" pension system to allow earlier withdrawals from retirement savings, aiming to increase participation, especially in Kenya's informal sector. This major overhaul seeks to make pensions more appealing by balancing long-term security with immediate financial needs.

• The proposed system would divide pensions into two parts: one locked until retirement and another accessible for short-term financial emergencies.
• RBA Chief Executive Officer Charles Machira confirmed proposals for policy changes to the Retirement Benefits Act for FY 2026/2027.
• Kenya currently manages Ksh2.53 trillion (USD19.6 billion) in pension assets, with over 50 percent in government securities.
• Other proposed reforms include tax exemptions for survivor benefits and removal of VAT and excise duties for pension fund managers.
• In South Africa, a similar early-access system allowed withdrawals of approximately Ksh425.83 billion (USD3.3 billion) by mid-2025.