Sanlam Kenya, the NSE-listed financial services firm, has launched Sanlam Akiba Plus, a comprehensive digital pension platform designed to address Kenya’s critical retirement savings crisis. The mobile-first solution targets the 70% of Kenyans who struggle financially after retirement due to inadequate savings, offering four specialized pension products through a single, accessible platform.
Addressing Kenya’s Pension Crisis
The timing of Akiba Plus reflects urgent demographic realities. Currently, only 26% of Kenya’s workforce saves for retirement, leaving millions vulnerable to financial hardship in their golden years. With the Retirement Benefits Authority (RBA) reporting that seven out of 10 Kenyans struggle financially after retirement, the launch addresses a KES 2.25 trillion pension market that desperately needs innovative, accessible solutions.
The launch aligns with Kenya’s insurance sector momentum. The Insurance Regulatory Authority (IRA) confirmed that long-term insurance premiums reached KES 110.39 billion in Q2 2025, marking a robust 17.7% year-over-year growth. This surge, driven by digital transformation initiatives and regulatory reforms, creates a favorable environment for tech-enabled pension solutions.
Four-Product Portfolio for Diverse Needs
Akiba Plus introduces a comprehensive suite addressing different retirement planning scenarios:
- Akiba Plus Personal Pension Plan (IPP) enables individuals to contribute flexibly while enjoying tax relief benefits and real-time investment tracking. This addresses Kenya’s large informal sector, where 83% of employment occurs, by removing traditional barriers to pension participation.
- Akiba Plus Post-Retirement Medical Fund (PRMF) tackles rising healthcare costs, providing a structured savings vehicle for medical expenses after retirement. With Kenya’s aging population projected to grow significantly, this addresses a critical gap in retirement planning.
- Akiba Plus Employer Umbrella Plan (UPP) offers businesses comprehensive administrative and regulatory support, featuring seamless payroll integration and automated compliance. This is particularly relevant given that only 128,000 of 841,600 new jobs created in 2015 were formal, highlighting the need for employer-friendly pension solutions.
- NSSF Tier II Compliant Pension Plan provides a digital alternative to mandatory NSSF contributions, potentially offering higher returns while maintaining compliance with the NSSF Act 2013. This addresses recent changes where NSSF contribution limits jumped from KES 18,000 to KES 36,000, creating significant cost pressures for employers.
Technology-Driven Financial Inclusion
Sanlam Life CEO Jacqueline Karasha emphasized the firm’s significant investment in InsurTech innovation, stating: “Our goal with Akiba Plus is to close the pension gap in Kenya by offering a simple, credible and future-ready solution that works for everyone. This is about helping Kenyans save consistently and retire with dignity.”
The mobile-first approach leverages Kenya’s digital finance leadership, where over 86% of adults use mobile money for everyday transactions. This digital foundation enables self-service onboarding for personal pension plans while allowing employers to establish workplace pension schemes efficiently.
Guaranteed Returns in Volatile Markets
All Akiba Plus contributions feature capital protection guarantees and a minimum 5% return, providing security in Kenya’s evolving economic landscape. The scheme’s assets will be managed according to the Trust Deed and Rules, Investment Policy Statement (IPS), and the Retirement Benefits Act, ensuring regulatory compliance and fiduciary responsibility.
This guarantee is significant given Kenya’s pension sector performance, where segregated retirement benefits schemes recorded a 6.6% return in Q2 2025, with strong equity performance of 21.5% driven by the Nairobi All Share Index’s 17.3% gain.
Strategic Market Positioning
Dr. Patrick Tumbo EBS, Group CEO of Sanlam Kenya, highlighted the broader strategic importance: “The development of Sanlam Akiba Plus underscores the wider commitment and investment by Sanlam Kenya to enhance the delivery and distribution of insurance products through robust digital platforms.”
The launch positions Sanlam to capture market share in Kenya’s expanding pension sector, which grew 14% to KES 2.255 trillion by end-2024. With pension assets representing 15% of GDP and the RBA targeting 34% pension coverage by 2029, Akiba Plus arrives at a critical growth inflection point.
Regulatory Environment and Market Opportunity
The Kenya National Financial Inclusion Strategy (2025-2028) emphasizes moving beyond traditional financial inclusion toward “financial health,” with only 18.3% of Kenyan adults considered financially healthy. Akiba Plus addresses this by providing comprehensive retirement planning tools accessible through digital channels.
Pan-African Growth Strategy
As part of the Sanlam Group, which operates across 32 African markets, Akiba Plus represents Kenya as a testing ground for scalable digital pension solutions. The platform’s mobile-first architecture and flexible product structure position it for potential expansion across Sanlam’s African footprint.
With Kenya’s insurance penetration at just 2.3-2.4% of GDP compared to global averages of 7.2%, the market opportunity extends far beyond immediate pension needs. Success with Akiba Plus could establish templates for similar solutions across Sub-Saharan Africa’s underserved pension markets.
The launch of Sanlam Akiba Plus represents a significant step toward addressing Kenya’s retirement savings crisis through technology-enabled, accessible pension solutions. By combining guaranteed returns, regulatory compliance, and mobile-first accessibility, the platform targets both immediate market needs and long-term demographic trends that will define Kenya’s retirement landscape.
