Retirement Calculator Kenya: Project Your Pension Pot and Monthly Income

Updated 18 October 2026

Quick answer: enter your age, what you have saved, and what you and your employer pay in each month. The calculator shows what your pension pot could be worth at retirement, how much of it you can usually take as cash, and the monthly income the rest could pay you. All figures are in KSh.

How the retirement calculator works

The calculator grows your current savings and your monthly contributions month by month at the yearly return you choose. Contributions go up once a year by the percentage you enter, which is how most salaried people see their pension deductions rise as their pay rises. It then splits the final pot the way most Kenyan pension schemes do: up to one-third as a cash lump sum and at least two-thirds left to pay you an income.

The monthly income figure assumes the two-thirds stays invested at the same return and is paid out evenly until it runs out after the number of years you pick. That is roughly how income drawdown works. An annuity from an insurer works differently: you hand over the money and the insurer pays you for life, at a rate it quotes on the day you buy. Ask for a quote before you decide.

Because money loses value over time, every key figure is also shown “in today’s money”. That is the number to compare with your current pay. A pot of KSh 20 million in 25 years will buy far less than KSh 20 million buys today.

A worked example

Take a 35-year-old with KSh 500,000 already saved who pays KSh 10,000 a month (her share plus her employer’s). She expects contributions to rise 5% a year, a 9% yearly return and 5% inflation, and wants the income to last 20 years after she retires at 60.

• She pays in about KSh 5.73 million over 25 years.
• The pot reaches about KSh 20.66 million, worth about KSh 6.1 million in today’s money.
• One-third, about KSh 6.89 million, can usually be taken as cash.
• The other two-thirds could pay about KSh 120,800 a month for 20 years, which is about KSh 35,700 a month in today’s money.

Small changes matter a lot over 25 years. Try the same example with 7% instead of 9% and the pot falls sharply. Starting five years earlier helps more than almost any other change.

Rules that decide what you actually get

How much you can take as cash

The Retirement Benefits Authority’s rules allow members of a contributory scheme to take up to one-third of their benefits as a lump sum at retirement, and up to one-quarter in a non-contributory scheme. Additional voluntary contributions can be taken in full. The rest buys an annuity or goes into income drawdown, unless your scheme rules allow otherwise for small pots.

Leaving a job before retirement

If you leave your employer before your scheme’s early retirement age, the RBA says you can be paid up to 50% of your total benefits, including employer contributions. The balance is either kept in the scheme until you retire or moved to another registered scheme, such as your new employer’s scheme or an individual pension plan. You can get 100% if you leave on medical grounds or emigrate permanently, subject to the trustees’ approval.

Tax on contributions and payouts

Since December 27, 2024, contributions to a registered pension or provident fund are deductible from taxable pay up to KSh 30,000 a month (KSh 360,000 a year), according to KRA. Pension benefits are tax-exempt when you reach the retirement age in your scheme’s rules, when you withdraw early because of ill health, or when you withdraw after 20 years of membership. Other early withdrawals can be taxed, so the cash you receive may be lower than the figure above.

Retirement age

Most schemes, including NSSF, use 60 as the normal retirement age, and most allow early retirement from 50. Check your scheme’s trust deed and rules, because they decide the exact age for you.

Don’t forget NSSF

NSSF is a separate fund. If you want it included, add your monthly NSSF deductions plus your employer’s matching amount to the monthly contribution box. Our NSSF calculator shows what you and your employer pay at your salary, and the NSSF benefits guide explains when you can claim. To see how pension deductions change your take-home pay, use the PAYE calculator. If your contract pays gratuity, the gratuity calculator works out what is due.

Saving outside a pension, for example in a money market fund or treasury bills? The investment returns calculator compares those options side by side.

Choosing sensible numbers

• Return: look at your scheme’s declared interest over several years, not just the best one. A cautious figure gives a safer plan.
• Inflation: Kenya’s inflation has ranged from under 3% to almost 10% since 2022. Using 5% to 6% is reasonable for a long plan.
• Years of income: plan for longer than you expect. Many people live 20 to 25 years after 60.
• Contribution growth: if you expect few pay rises, use 0% to 3%.

Frequently asked questions

How do I calculate my pension in Kenya?

For a defined contribution scheme, your pension is what you and your employer paid in plus the interest the scheme declared, less charges. Enter your current balance and monthly contributions above to project it to retirement. A defined benefit scheme uses a formula in its rules instead, usually based on your final salary and years of service.

How much of my pension can I withdraw when I retire?

Usually up to one-third as cash in a contributory scheme. The rest pays you an income through an annuity or income drawdown.

Can I withdraw my pension when I leave a job?

Yes, but only up to 50% of your total benefits if you leave before your scheme’s early retirement age. The rest stays invested or moves to another registered scheme.

Is my pension lump sum taxed?

Not if you take it at your scheme’s retirement age, because of ill health, or after 20 years of membership. Other withdrawals may be taxed.

Is this calculator’s figure guaranteed?

No. It is an estimate based on the return and inflation you enter. Your scheme’s statement and your trustees have the final figures.