Many Kenyan retirees prioritize building a home above all else when spending their pension savings, according to findings from the Retirement Benefits Authority (RBA).
The authority’s recent survey shows that 16 percent of respondents, the largest single group, allocated their retirement benefits to home construction. This trend reflects the deep value Kenyans place on securing family shelter and leaving a tangible legacy for future generations.
However, even though they made this choice, many of these retirees now urge younger workers to take a different approach.
“They should build their dwelling places early. They should not use their retirement benefits to build their houses,” the survey report reads.
This advice stems from lived experience, highlighting the financial pressure and regret that often follow when people delay home construction until their retirement years.
Retirees also dedicate a significant portion of their funds to other life essentials. School fees take up another 16 percent of pension spending, followed closely by farming at 15 percent and new business ventures at 14 percent. Additionally, retirees allocate 10 percent to land purchases, eight percent to real estate, seven percent to bank deposits, and a mere two percent to buying shares.
This spending pattern reveals a distinct preference for physical, income-generating assets rather than financial markets. Across the board, retirees clearly trust investments they can see and touch more than stocks or traditional savings accounts.
While financial choices vary, the overall well-being of retirees presents a mixed but generally optimistic outlook. Sixty percent say they feel happy, 46 percent enjoy their daily lives, and 36 percent maintain a strong sense of purpose.
On the flip side, 18 percent admit that day-to-day activities are getting harder, 13 percent struggle with financial stability, and one percent experience loneliness. These figures serve as a powerful reminder that the planning decisions made during one’s working years directly dictate the quality of life well after the final paycheck.
Health stands as the primary concern for retirees, with 32 percent naming it the most vital part of their post-work lives. Buying food ranks next at 21 percent, followed by educating children at 14 percent, growing a business at nine percent, and paying for grandchildren’s schooling at four percent. These numbers illustrate that retirement in Kenya rarely signals an end to heavy family financial duties.
The survey offers a blunt message to younger workers: start early and plan with precision. Employees should evaluate their future lifestyle needs long before they exit the workforce, increase their pension contributions whenever possible, slash their debts, and create a steady cash flow to support themselves once the monthly salary stops.