Kenya's pension regulator moves to recover Sh65bn employers deducted but never paid in
The Retirement Benefits Authority wants to work with the tax authority and have the Treasury pay public-sector deductions directly to schemes.
Naivasha — Kenya's Retirement Benefits Authority (RBA) is taking steps to recover Sh65 billion in pension contributions that employers deducted from workers' pay but never sent to their retirement schemes. The amount includes the contributions and the interest that has built up on them.
RBA's John Karia told the fourth annual conference of the Association of Retirement Benefits Schemes, at Lake Naivasha, that the Authority was reviewing the Retirement Benefits Act to strengthen enforcement and to work with the Kenya Revenue Authority on recovering the money.
Paying schemes directly
Karia said a large share of the unpaid contributions involved public-sector employers facing financial difficulties. One proposal under discussion is for statutory deductions to be paid directly from the National Treasury to pension schemes and other statutory bodies, rather than through individual government entities, to cut delays.
A growing sector with a gap
Kenya's retirement sector held Sh3.1 trillion in assets at 30 June 2026. It has about 4.1 million active contributing members, and about eight million people are enrolled in some kind of retirement arrangement. But only 26% of the workforce is covered, with most of the uncovered working in the informal sector.
Karia said existing products had been designed for formal employees, and the Authority was working with the industry on flexible, affordable products for informal workers. Jane Nzau, who chairs the schemes' association, called for more financial education so that people start saving for retirement early.
Source: KBC, November 2026.
