Octagon Africa Group CEO Fred Waswa and AlexForbes CEO Growth Markets Jonathan Muthige during the signing of a strategic partnership to provide retirement savings solutions targeting 15 million workers in Kenya’s MSME sector. Looking on are Octagon Africa CEO Kenya Davis Ongiro and AlexForbes, chief commercial officer for growth markets, Craig Bentley/ HANDOUTRegional financial services provider–Octagon Africa has partnered with Alexforbes, South and Central Africa’s top financial services provider and pension fund administrator, to provide an affordable retirement benefit solution for Kenya’s micro, small and medium-sized enterprises (MSMEs).
This is a sector that has long been excluded from formal retirement schemes.
The partnership seeks to close one of the biggest gaps in Kenya’s financial system by expanding access to retirement savings for millions of workers in smaller businesses.
Through the Octagon Umbrella Retirement Benefits Scheme, even enterprises with as few as three employees will be able to provide their teams with affordable retirement savings options, bundled with group life and medical cover.
The scheme is designed to be cost-effective, flexible and simple to manage, supported by digital platforms that ensure transparency and ease of compliance.
“We are giving MSMEs the tools to protect their employees while boosting retention, productivity and long-term financial security. These businesses are the backbone of our economy, yet most lack access to retirement solutions. With Alexforbes, we are changing that reality,” Octagon Africa Group CEO Fred Waswa said.
“Many smaller businesses or organisations lack the capacity to run their own retirement schemes because of the cost and compliance requirements. With the Octagon Umbrella Retirement Benefits Scheme, we are removing those barriers. We handle the legal and regulatory requirements, allowing employers to simply join with their teams and begin saving. Financial security should not be a privilege reserved for large companies; it is a right for every worker.”
Octagon will reinforce the scheme with advisory services and financial literacy programmes to help employers and employees make informed financial decisions throughout their careers.
Alexforbes, with more than 90 years of global expertise, will bring tested international best practices, adapted for the East African market.
“Through this scheme, we are combining global expertise with local insight. Together, we are delivering retirement solutions that are practical for small businesses, empowering for employees, and sustainable for the economy. Financial well-being should not be a privilege for the few, it must be accessible to all,” said Craig Bentley, chief commercial officer of Alexforbes Growth Markets.
According to the Kenya National Bureau of Statistics (KNBS), there are more than 7.4 million MSMEs and SMEs in Kenya, employing about 15 million people.
The MSMEs contribute more than 40 per cent of the country’s GDP and nearly 80 per cent of jobs.
However, more than 70 per cent of these businesses do not offer structured retirement benefits, leaving millions of employees financially exposed in later life.
Latest statistics from the Retirement Benefits Authority (RBA) show that Kenya’s retirement fund assets grew to Sh2.23 trillion in 2024, up from Sh1.58 trillion in 2021.
Umbrella schemes have been among the fastest-growing, expanding from Sh119.5 billion in 2021 to Sh204 billion in 2024.
Despite this growth, coverage remains low. Kenya has about 7.4 million registered members of retirement benefit schemes, but only 4.4 million are active contributors, representing just 26.6 per cent of the working-age population.
