Octagon Africa Group CEO Fred Waswa speaks at a past even
Kenya’s retirement income system has received a C grade, scoring 53.1 in the 2026 Marsh CFA Institute Global Pension Index, in its first-ever assessment. The findings highlight the need to improve retirement income adequacy while building on the country’s existing strengths in pension system integrity.
Kenya is among three new retirement income systems included in the 2026 Index, alongside the Dominican Republic and Qatar. Their inclusion brings the total number of systems assessed to 55, covering more than 66 per cent of the world’s population.
The Index evaluates retirement income systems across three key dimensions: adequacy, sustainability and integrity. Kenya scored 38.9 (D) for adequacy, 53.0 (C) for sustainability and 76.0 (B+) for integrity, resulting in an overall score of 53.1 (C).
The results reveal a significant gap between the adequacy of retirement income and the integrity of the pension system. While Kenya’s B+ integrity score points to comparatively strong performance in areas such as governance, regulation, protection and communication, the D grade for adequacy highlights challenges in ensuring retirees receive sufficient income to meet their needs.
The findings come as pension systems worldwide face growing pressure from demographic and workforce changes. The 2026 Index’s special chapter examines the impact of ageing populations on retirement systems, noting that rising life expectancy means people are spending longer periods in retirement.
In Kenya, the report notes that life expectancy at age 65 has increased by 2.9 years since 1950. The trend underscores the importance of ensuring retirement savings are sufficient to support people throughout longer periods of retirement.
Kenya’s inclusion in the 2026 Global Pension Index was facilitated through Octagon Africa’s strategic partner, Alexforbes. Octagon Africa contributed to the assessment by responding to the Index survey and providing data and insights on Kenya’s retirement system.
Octagon Africa Group Chief Executive Officer Fred Waswa welcomed Kenya’s inaugural assessment, describing it as an important opportunity for the country to evaluate the performance of its retirement system and identify areas for improvement.
“Kenya’s pension system continues to evolve, and the inclusion of the country in this Index is an important benchmark to see where we stand and what needs to be done better. The findings give us an opportunity to have a more informed conversation about retirement adequacy, sustainability and the long-term financial security of Kenyans,” Waswa said.
The Marsh CFA Institute Global Pension Index is now in its 18th edition. Since its launch, when it assessed the retirement income systems of 11 countries, the Index has expanded to cover 55 systems in 2026.
It provides a comparative framework for evaluating retirement systems based on adequacy, sustainability and integrity, helping policymakers and industry stakeholders identify strengths, address weaknesses and improve long-term retirement outcomes.
