18 Million Informal Workers Get Pension Hope as KNEST Clinches Two Global Honours

Kenya’s micro-pension scheme for self-employed workers has earned international recognition, winning two top awards that spotlight the country’s push to extend retirement security beyond the formal sector.

The Kenya National Entrepreneurs Savings Trust (KNEST) took home the 2026 Money Awareness and Inclusion Awards (MAIAs) for Best Non-Profit Project in a Developing Country and Best Non-Profit Project for Under-Served Communities.

The awards were announced on May 28, 2026, with finalists drawn from 41 countries across 17 categories.

For millions of Kenyans who work outside formal employment, the recognition signals more than a trophy, it validates a model that many in informal worker pension Kenya policy circles have long argued is overdue.

Why Most Kenyan Workers Had No Pension Safety Net

Pension coverage in Kenya currently reaches only about 17 per cent of the workforce, almost entirely within the formal sector.

That leaves more than 18 million self-employed workers; bodaboda riders, mama mboga traders, jua kali artisans, matatu crews, farmers, gig workers, and market vendors, without any structured retirement savings path.

These workers make up over 80 per cent of Kenya’s workforce yet carry the highest vulnerability to income shocks and old-age poverty, according to KNEST data.

“For far too long, informal sector workers have remained largely excluded from traditional retirement savings arrangements,” said Rose Kwena, Chief Executive Officer of KNEST. “KNEST is helping bridge that gap by providing an accessible, affordable and flexible pension solution tailored to the realities of the self-employed.”

How KNEST Works — Sh50 at a Time

Established by the National Treasury in 2023, KNEST was designed specifically around how informal workers actually earn and spend money, in small, irregular amounts.

Members can contribute as little as Sh50 at their own pace. Each contribution is automatically split: 70 per cent goes into long-term pension savings, while 30 per cent flows into a short-term savings pot that members can access at any time.

This structure addresses one of the biggest barriers that has historically kept informal worker pension Kenya participation low the fear of locking away money you might urgently need.

The scheme operates via USSD technology, meaning it works on basic mobile phones without internet access or smartphone literacy. This design choice was deliberate, targeting workers in areas where data connectivity or advanced devices are out of reach.

International Judges Highlight a Global Challenge

The 23-member international judging panel praised KNEST for tackling one of the most pressing policy problems facing developing economies: how to provide retirement security to workers in informal, gig, and freelance arrangements.

Kwena said the awards reinforce KNEST’s mission. “These awards inspire us to continue deepening our efforts to promote financial inclusion and retirement security for all,” she said.

The wins position Kenya as a reference point for other developing nations grappling with the same informal worker pension Kenya challenge, how to design systems that work for the majority of citizens, not just those with payslips.