Majority of Kenya's retirees earn below Sh20,000 amid high dependency - RBA
Despite their limited income, many retirees remain financially responsible for their families. The survey found that 83.2 per cent of pensioners still have dependents, with the majority being adults.
A new survey has revealed that more than half of Kenyan pensioners live on less than Sh20,000 per month, with many struggling to meet financial obligations due to high dependency.
The study by the Retirement Benefits Authority (RBA) highlights the difficult reality retirees face, as most continue to support their children and grandchildren despite their meager pensions.
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The survey, which involved 530 retirees, shows that 31.3 per cent receive below Sh10,000 per month, while 23.6 per cent earn between Sh11,000 and Sh20,000.
Another 20.2 per cent receive between Sh20,000 and Sh30,000, while 22.3 per cent get between Sh30,000 and Sh100,000. Only 1.9 per cent of pensioners earn more than Sh100,000 monthly.
Despite their limited income, many retirees remain financially responsible for their families. The survey found that 83.2 per cent of pensioners still have dependents, with the majority being adults.
“The survey shows that the highest number of dependents among retirees are aged between 18-24 years and over 25 years, both with 206 dependents,” the report states.
The study attributes this heavy reliance on retirees to Kenya’s high unemployment rate, which has left many young people unable to sustain themselves.
Many elderly Kenyans are forced to use their pension income to support their families, cover basic needs and even pay school fees.
“With children of retirees increasingly dependent on their parents and sometimes grandchildren, there appears to be a complex interplay of economic challenges and familial support dynamics,” the survey notes.
The financial pressure on retirees is reflected in their monthly expenses. On average, pensioners spend Sh28,494 on school fees, Sh22,720 on loan repayments, Sh14,405 on food and household goods, Sh10,229 on rent, and Sh9,431 on medical expenses or insurance.
Many retirees also support extended family members. The survey found that 45 per cent of retirees provide for dependents who are not their children, while 34 per cent cover school fees for their relatives.
The findings highlight the need for stronger social support systems to ease the financial burden on retirees. As the cost of living continues to rise, pensioners remain among the most vulnerable, struggling to balance their limited income with the growing needs of their families.
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