Why Kenyans are cashing out retirement savings earlier

On leaving employment due to job loss or other factors, the retirement benefit laws allow employees to access 75 per cent of their retirement savings. [Courtesy]

The amount of money Kenyans cashed out from retirement savings surged 10 per cent last year pointing to difficulties in retention of formal employment jobs due to economic hardships.

Some of those who have been laid off claim to be using the money to survive the storm in a move that threatens to expose them to poverty in retirement years.