Experiences of Retirees Under Pension Scheme Coverage In Kenya: The Case For Pension Reforms

Abstract

Retirement is a phase of life following cessation of regular work entailing significant reduction one’s engagement with income-related pursuits. For persons who in their working life joined or registered in a pension scheme, retirement holds a promise of obtaining pension benefits that accrue over the working years. In Kenya, there has been an increase in the number of retirees exiting the labour force with terminal retirement benefits even though, pension scheme coverage of workers is still low estimated at less than 20% in the country. Retirement benefits in Kenya are paid in four common modes: total lumpsum, partial lumpsum, monthly pension, and annuities. Although studies have been conducted to examine patterns of enrolment in schemes in Kenya and income security pensions, there is dearth of knowledge on how pensioners experience retirement in Kenya and if these significantly differ from those of non-pensioners. Thus, the objectives of the study were: to examine the major social, economic and demographic characteristics of the pensioners; explore the experiences of retirees receiving pension benefits; and recommend ways of dealing with the negative experiences and challenges faced by retirees in Kenya. The paper however focus on experiences of retirement . A sample of 978 persons aged 50 years and older were recruited from 9 regions and 18 counties of Kenya. Data were collected using a survey questionnaire, focus group discussion and key informants interviews.