Walk through any market in Nairobi or Kisumu and you’ll find mama mbogas, boda riders, tailors, and mechanics working tirelessly. They earn daily, pay their bills, and take care of children. But ask one question—what about retirement?—and silence often follows.
In Kenya, over 80% of workers are in the informal sector. Unlike office employees, they rarely have employers setting aside retirement contributions. For many, old age means relying on children, extended family, or hustling until health says otherwise. The truth is harsh: without a pension plan, you risk financial struggle in your later years.
Why Saving Early Matters
Starting early is powerful. Even saving KES 200 a day in a pension plan grows significantly over 20–30 years. It’s not just about money; it’s about dignity, independence, and peace of mind when you’re no longer able to hustle as you do now.
Pension Options in 2024
Thankfully, 2024 has more pension options than ever:
- NSSF now requires contributions from both employers and employees, but individuals in the informal sector can also join voluntarily.
- Individual pension schemes like Zamara’s Vuna Pension, CIC’s Jipange, and Britam’s personal pension plans allow you to save flexible amounts and earn annual returns.
- SACCOs are also introducing pension-linked savings products, which fit well if you’re already a member.
👉 Did you know you can even check your NSSF balance on your phone? Simply dial *303# on Safaricom, follow the prompts, and you’ll see how much you’ve contributed so far. No paperwork, no long queues. This small habit helps you stay on top of your retirement savings.
Black Tax vs. Prioritizing Yourself
For many in the informal sector, saving is not just about low income—it’s also about black tax. This is the unspoken expectation to support extended family members with school fees, hospital bills, or daily upkeep. While helping family is noble, it often leaves little for personal savings.
Here’s the reality: if you don’t prioritize yourself today, you risk becoming dependent tomorrow. Setting aside even a small portion for your retirement is not selfish—it’s responsible. By securing your future, you reduce the burden on your children and family later on.
How to Start
Pick one pension scheme. Begin small—KES 500 a week is better than zero. Automate contributions through M-Pesa. Stay consistent, even when income fluctuates. Over time, it builds.
Your future self will thank you. Retirement is not a faraway idea—it’s a reality that begins with today’s small decisions. Don’t wait. Start now.
- Dial *303# today to check your NSSF balance and see where you stand.
- Explore pension options like Zamara Vuna, CIC Jipange, or Britam and start with as little as KES 500.
- Share this article with someone in your circle who relies on daily income—help them secure their future too.
