Workers face old age poverty as employers default pension

Companies battling tough economic times and government entities crippled by budgetary constraints increasingly reallocate employee pension deductions to cover immediate operational costs...

✨ Key Highlights

Kenyan workers are facing the prospect of old-age poverty as employers increasingly fail to remit pension deductions. Unremitted contributions have surged significantly in recent years.

Unremitted pension contributions have risen to Sh84.16 billion in 2025, up from Sh69 billion in 2024.
The Retirement Benefits Authority is the main organization highlighting the issue.
This default is occurring due to financial distress in the private sector and cash crunches in the public sector, with firms breaching laws requiring remittance within 15 days.

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