Pension Plans in Kenya — Individual & Employer Schemes
Don’t rely on NSSF alone. Build a stable financial future with private pension schemes that offer tax-free benefits and guaranteed growth for your retirement.
What Is a Pension Scheme?
A pension scheme is a long-term savings plan where you contribute a portion of your income during your working years to build a fund that will provide you with a regular income or a lump sum payment when you retire. In Kenya, these schemes are strictly regulated by the Retirement Benefits Authority (RBA).
Why Every Kenyan Employee & SME Owner Needs One
While the mandatory NSSF contributions provide a base, they are rarely enough to maintain your current lifestyle after age 60. A private pension through Shamja Insurance Agency offers:
- Tax-free contributions up to KES 20,000 monthly
- Compound interest earnings higher than bank savings
- Protection against inflation
- A dignified retirement without dependency on relatives
Types of Pension Schemes
Individual Pension Plans
Ideal for the self-employed, freelancers, or employees in companies without a scheme. You control how much you save, starting from as low as KES 500 per month.
Occupational Schemes
Established by employers for their staff. Both the employer and employee contribute, often resulting in a larger fund due to the employer's top-up.
Umbrella Pension Schemes
A cost-effective solution for SMEs. Multiple small employers pool their funds into one large scheme to reduce management costs and maximize returns.
Lifetime Guaranteed Annuity
An annuity converts your retirement savings into a guaranteed monthly salary for the rest of your life. It is specifically designed to complement your statutory NSSF Tier I & II contributions, ensuring you bridge the gap between basic "survival" and the "comfort" of a paycheck that never runs out.
Income Drawdown
A post-retirement option. Instead of buying an annuity, you keep your money invested and "draw down" a monthly income while the balance continues to earn interest.
Which Scheme Is Right for You?
For Employees
Join an Occupational or Umbrella scheme. Maximize your employer's matching contribution for "free money" toward your retirement.
For SMEs
Umbrella schemes are perfect. They remove the headache of legal compliance while offering your staff high-end corporate benefits.
Self-Employed
Individual Pension Plans (IPP) provide total flexibility. Increase or decrease your contributions based on your monthly business cash flow.
How to Get Started Today
Documents You Need
Only 3 things: A copy of your National ID/Passport, your KRA PIN Certificate, and a passport-sized photo.
M-Pesa Contribution Options
Enjoy the convenience of making your monthly or lump-sum contributions via M-Pesa. It’s instant and tracked in your portal.
Verified Content
Reviewed by Shamja Advisor
IRA License: IRA/05/48521/2026
Frequently Asked Questions
Can I withdraw my pension before 60?
Yes, RBA rules allow you to withdraw up to 50% of your personal contributions if you leave your job, though it is advised to keep it invested for long-term growth.
What happens if I change jobs?
Your pension is portable. You can transfer your accumulated funds to your new employer's scheme or into an Individual Pension Plan.
Is my pension money safe?
Yes. Pension funds are held by a Custodian (a bank) and overseen by a Trustee, independent of the insurance agency or employer.
Get Your Pension Set Up Today
Start with as little as KES 500 and build the life you deserve. Our licensed agents will guide you through the best RBA-registered schemes.