Rise In Pension Contributions Attributed To Changes in NSSF Act (2013)
Cubes with text PENSION PLAN, calculator and stationery on wooden background
Kenyans’ contributions towards pension schemes have nearly doubled since 2022, data from the Retirement Benefits Authority (RBA) shows.
RBA records show pension contributions over the last three years have risen from Ksh.62.73 billion for the half year ending June 2022 to Ksh.118.80 billion for the half ending December 2024.
For the six months ending in December 2022, pension contributions were Ksh.70.26 billion, then climbed to Ksh.83.14 billion in the half-year up to June 2023 and further to Ksh.105.65 in the second half of 2023.
Last year, Kenyans contributed Ksh.116.10 billion in the first year-half, before taking it up to Ksh.118.80 billion in the second half.
At the same time, contributions to Post-Retirement Medical Funds (PRMFs), which allow one to save for their healthcare after retiring, have risen sharply since September 2024.
In the six months ending December 2023, RBA data shows Kenyans contributed Ksh.51.51 million towards their PRMFs, which went up in the first half of last year to Ksh.76.02 million.
In the second half of 2024, the figure shot more than thrice to Ksh.268.36 million, mainly due to the Treasury directive allowing pension schemes and employers to set medical funds for members or employees per post-retirement medical fund rules.
Recent amendments to the National Social Security Fund (NSSF) Act, 2013, have seen the introduction of increased contribution rates to the state-owned pension scheme and the expansion of the contribution base to include workers in the informal sector.
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