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Pension contributions should align with income patterns, allowing for small, irregular, and mobile-based payments. [Courtesy]
Kenya created over 822,000 new jobs in 2025, according to the Kenya National Bureau of Statistics Economic Survey 2026 released recently. At first glance, this signals a resilient economy. But the composition of those jobs tells a more important story that reshape how we think about savings, pensions, and financial security.
Over 87 per cent of these jobs were created in the informal sector. Today, 83.8 per cent of Kenya’s workforce, about 18.1 million people, earn their living outside formal employment. This is not a transitional phase. It is the structure of our economy.
Yet our pension system remains anchored in a different reality built around formal employment, predictable income, and payroll deductions. That model, while effective for a segment of the population, no longer reflects how the majority of Kenyans earn.
