Pension
The National Social Security Fund (NSSF) of Kenya provides 2 types of old-age benefits: mandatory Pension Fund (for all employees) and Provident Fund (for self-employed and retired persons, voluntary coverage for employees). Contributions are made by both employees and employers to the Pension Fund in 2 tiers, depending on the level of earnings.
To be eligible for old-age benefits, an employee must be 60 years of age, and the employment must cease properly and fairly. Early retirement is possible at the age of 50 years. The pension amount depends on the total contributions paid to the Pension Fund and Provident Fund. The amount in the Pension Fund may be taken out as a lump sum or an annuity.
A social assistance old-age benefit of KES 2,000 per month is paid to citizens above 70 years of age living in poverty.
Dependents/Survivors Benefits
In Kenya, the survivors' benefit is paid to dependents, including spouses, children under 25 years of age, or parents, grandparents, and grandchildren of the deceased if the person dies before retirement age and has made at least 36 contributions to the National Social Security Fund.
The pension amount depends on the contributions made to the Pension Fund. The amount in the Provident Fund is paid as a lump sum to the survivors. A standard funeral grant is KES 10,000 (Kenyan shillings).
If an employee dies due to an injury caused by a work-related accident, compensation is paid to the dependents, and the employer shall be responsible for the funeral expenses.
Invalidity Benefits
To qualify for an invalidity pension, an individual must be assessed with a total and permanent physical or mental disability and have paid at least 36 contributions to the National Social Security Fund (NSSF). The pension amount depends on the contributions made to the Pension Fund. The amount in the Provident Fund is paid as a lump sum.
If an individual becomes disabled due to a work-related injury or experience, they are entitled to benefits covered by the employer. In case of temporary disability, benefits are 50% of his/her monthly earnings (maximum KES 540) paid 3 days after the individual’s date of the disability, up to 12 months. The maximum total temporary disability benefit is KES 240,000 (Kenyan shillings).
Individuals with a permanent disability are paid a lump sum of 96 months' worth of their earnings or the maximum benefit amount of KES 240,000, whichever amount is lower. Individuals with a partial permanent disability are entitled to a lump sum worth 60 months of their earnings or the maximum benefit of KES 240,000, whichever amount is lower.