The Association of Retirement Benefits Schemes (ARBS) and the Retirement Benefits Authority (RBA) have warned that about Ksh 65 billion in retirement contributions have not been remitted to pension schemes.

ARBS chair Jane Nzau highlighted that only 26 percent of workers are enrolled in pension schemes, with the majority of the informal sector excluded.

Nzau welcomed proposals to expand pension products tailored to informal workers and to boost financial‑literacy outreach.

RBA senior official John Kaya said public institutions are the main source of the shortfall, having deducted contributions from employees but failing to forward them to the schemes.

Kaya outlined a draft amendment that would require pension deductions to be made directly from the Treasury and suggested partnering with the Kenya Revenue Authority to enforce collection.

The sector now comprises roughly 70 service providers, serving over 4 million active members and an estimated 8 million retirees.

ARBS vice‑chair Daniel Mainga noted that new tax incentives allow up to Ksh 15 000 per month for contributions to post‑retirement medical funds, raising the total allowable benefit to Ksh 45 000 when combined with pension contributions.

He added that the introduction of post‑retirement medical cover regulations aims to address the biggest challenge facing retirees, according to Nzau.