How METRIKA calculates this
Savings compound monthly at the investment return, with the monthly contribution added at the end of each month and raised once a year. The balance in today's money divides by (1 + inflation)^years.
Retirement income uses the 4% rule: withdrawing about 4% of the portfolio a year has historically lasted around 30 years. It is a rough guide, not a guarantee. The Freedom Score compares that income with your spending today (100 = fully covered).
What to know in Kenya
Kenyan savers commonly use money market funds, Treasury bills and bonds, SACCO deposits, NSSF and occupational pensions. Interest from these is usually taxed at 15% withholding tax, with infrastructure bonds tax-free. Returns in the model are before tax and fees, so use a net figure if you know it. Inflation was 6.5% in July 2026 (KNBS, via CBK).
Frequently asked questions
What return should I assume?
Use a return a little above inflation for cautious savings, and higher only for long-term diversified investing. Past returns don't predict future ones.
What is the 4% rule?
A guide that says withdrawing about 4% of your savings in the first year of retirement, then adjusting for inflation, has usually lasted around 30 years.
Does NSSF count?
Yes. Add your NSSF and pension balances to today's savings, and include your monthly NSSF contributions in monthly saving.
How much money do I need to retire in Kenya?
A common guide is about 25 times the yearly spending you expect in retirement, based on the 4% rule. This simulator estimates what your savings could pay you in today's shillings.
What is the retirement age in Kenya?
The retirement age for most public servants is 60. Private employers set their own retirement age in contracts and pension scheme rules, and it's often 60 too.
Can Kenyans in the diaspora invest back home?
Yes. Many money market funds and SACCOs accept members living abroad, and government securities can be bought through the CBK DhowCSD platform. You'll usually need a Kenyan ID or passport and a KRA PIN.
Are infrastructure bonds tax-free in Kenya?
Interest on infrastructure bonds issued by the Kenyan government is exempt from withholding tax, which is why they're popular with long-term savers.
Sources
- Kenya National Bureau of Statistics — CPI & inflation
- Central Bank of Kenya — Central Bank Rate
- Central Bank of Kenya — Monetary Policy Committee decisions
Links are for reference only. METRIKA is independent and not affiliated with or endorsed by these organisations.
Rates checked 6 Nov 2026. METRIKA gives estimates, not financial or tax advice.