Kenya’s Pension System Scores C Grade in Global Index, Adequacy Lags
Octagon Africa Group CEO Fred Waswa speaks at a past event.
Kenya’s pension income system has received a C grade and an overall score of 53.1 in the 2026 Marsh CFA Institute Global Pension Index, with low retirement income adequacy emerging as a key weakness despite stronger scores in pension system integrity.
The inaugural assessment of Kenya scored the country D (38.9) for adequacy, C (53.0) for sustainability and B+ (76.0) for integrity, highlighting the challenge of ensuring that retirees receive sufficient income while maintaining a well-governed and sustainable pension system.
The 2026 Index includes Kenya among three new retirement income systems assessed, alongside the Dominican Republic and Qatar. Their inclusion brings the total number of systems covered to 55, representing more than 66 per cent of the global population.
The Index evaluates pension systems across three dimensions: adequacy, which examines whether retirement benefits meet people’s needs; sustainability, which considers the ability of systems to provide benefits over time; and integrity, which assesses governance, regulation, protection and communication.
Kenya’s results reveal a gap between the integrity of its pension system and the adequacy of retirement income. While the B+ integrity score points to strengths in governance and regulatory safeguards, the D adequacy grade indicates difficulties in ensuring that retirement benefits are sufficient for people’s needs in old age.
The findings come as pension systems worldwide face pressure from demographic changes and evolving workforce patterns. The 2026 Index’s special chapter examines the implications of ageing populations, particularly as longer life expectancy extends the period people spend in retirement.
For Kenya, the report notes that life expectancy at age 65 has increased by 2.9 years since 1950, underscoring the need for retirement savings to sustain people for longer periods after leaving employment.
Octagon Africa contributed to Kenya’s inclusion in the Index through its strategic partner, Alexforbes, helping respond to the survey and provide data and insights on the country’s retirement income system.
Octagon Africa Group Chief Executive Officer Fred Waswa said the assessment offers an important benchmark for evaluating the country’s pension system and identifying areas requiring 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. The findings give us an opportunity to have a more informed conversation about retirement adequacy, sustainability and the long-term financial security of Kenyans,” Waswa said.
The Marsh CFA Institute Global Pension Index is in its 18th edition, having expanded from 11 retirement income systems when it was first launched to 55 in 2026.
The Index provides a comparative framework for assessing how countries provide retirement income, with the latest assessment placing Kenya’s retirement adequacy among the key areas requiring attention.
