The Retirement Benefits Authority (RBA) recommends a minimum contribution of 5% from both the employee and employer, totalling 10% of monthly pensionable earnings. Many employers choose to contribute higher percentages to provide better retirement benefits to their staff.

Under the Income Tax Act Cap 470, pension contributions are tax-deductible up to KES 20,000 per month or 30% of your gross salary, whichever is lower. Contributions within that limit reduce your taxable income and save you PAYE every month.

An occupational pension scheme is set up by an employer for their staff — both the employer and employee contribute. A personal pension scheme is for individuals, including the self-employed and informal sector workers, who contribute on their own. Both are regulated by the RBA and offer tax relief on contributions.

KNEST (Kenya National Entrepreneurs Savings Trust) is a government-backed retirement scheme specifically designed for informal sector workers and the self-employed. It allows flexible, voluntary contributions and is regulated by the RBA — making it ideal for those without an employer-based pension.

For occupational schemes, you can access your pension when you retire, resign, are terminated, emigrate, or become permanently unable to work. For personal schemes, access terms vary by provider. Early withdrawal may attract tax penalties, so always check your scheme rules.

No. NSSF is a mandatory government scheme providing a basic retirement safety net. A private occupational or personal pension scheme is a separate, additional layer of savings that builds a much larger retirement pot. Most financial advisors recommend having both.