Octagon Africa has deepened its collaboration with in a strategic move aimed at strengthening retirement solutions and expanding pension coverage in Kenya under the evolving framework.
The enhanced partnership builds on an existing relationship and positions Kenya as a key gateway for long-term savings growth across East Africa, leveraging Octagon’s 19 years of regional experience alongside Alexforbes’ 90-year legacy in pension fund administration.
Driving Pension Growth and Inclusion
The collaboration is expected to support the expansion of retirement savings in one of Africa’s fastest-growing pension markets, with a focus on increasing participation among SMEs and underserved groups.
“We are deepening our collaboration with Alexforbes to benefit from their strong experience in retirement benefits,” said , Group CEO of Octagon Africa.
He noted that lessons from South Africa’s two-pot retirement system—where Alexforbes has processed over KES 88 billion in claims within 17 months—will help improve service delivery and inform practical retirement and investment solutions in Kenya.
Adapting to Emerging Retirement Risks
The partnership comes at a time when demographic and economic shifts are reshaping retirement planning. With longer life expectancy, retirees are increasingly expected to rely on income for 20 to 30 years post-employment.
“Our role is to make sure retirement savings are secure and continue to grow,” said , Group CEO of Alexforbes.
He added that the firm’s global investment insights and experience in large-scale pension reforms will support solutions that balance short-term access to funds with long-term financial security.
Aligning with NSSF Reforms
The deepened ties come amid major reforms in Kenya’s pensions sector following the implementation of the NSSF Act, which introduced an earnings-based contribution model.
Under the new structure:
- Both employers and employees contribute 6% of monthly income
- Contributions are split between Tier I and Tier II
The reforms are already driving growth, with pension assets reaching approximately KES 2.81 trillion as of December 2025, highlighting the sector’s expanding role in the economy.
Unlocking Digital and SME Opportunities
The partnership will also leverage Kenya’s strong adoption of mobile money and digital platforms to:
- Improve efficiency in pension administration
- Lower operational costs
- Enhance customer experience
A key focus area will be expanding access for SMEs through simplified umbrella schemes and digital solutions, addressing a segment that employs a significant portion of the workforce but remains largely underserved.
Regional and Economic Impact
Kenya’s position as a regional hub—providing access to a market of over 300 million people across East Africa—further strengthens the potential impact of the collaboration.
At a broader level, increased pension savings are expected to:
- Support infrastructure and energy investments
- Deepen capital markets
- Enhance Kenya’s attractiveness as an investment destination
As regulatory discussions continue, including the potential introduction of a two-pot retirement system locally, the Octagon-Alexforbes partnership is set to play a critical role in shaping a more inclusive, resilient, and sustainable pension ecosystem.