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Sh56.6bn pension shortfall threatens workers’ lives on retirement
Unremitted pension rose by Sh13.54 billion or 28.7 percent in six months to close December last year at Sh60.7 billion and swelled further to Sh72 billion as at end of June this year, according to RBA data.
Thousands of workers nearing retirement risk delays in accessing their benefits after persistent employer defaults on contributions plunged 27 pension schemes into a Sh56.5 billion deficit.
Latest Retirement Benefits Authority (RBA) data up to March 2025 shows the funding level—the ratio of a pension schemes’ assets (money and investments held) compared to their liabilities (benefits they have promised to pay members in future)— has fallen below the required minimum of 100 percent in half of the 53 registered defined benefit schemes.
