Economist Odhiambo Ramogi has cautioned the government against increasing its reliance on pension and other domestic savings to fund infrastructure, warning that political influence could put retirees’ money in investments that may expose them to losses.
Speaking on Radio Generation on Tuesday, Ramogi said he was “very uncomfortable” with greater government involvement in pension savings, arguing that money set aside for retirement should not be directed into investments based on political considerations.
“There are instances where those monies have gone with the wind in other foreign countries during economic recession or financial crisis,” he said.
His remarks followed President William Ruto’s call for changes to Africa’s financial rules to make it easier for more local savings to be invested in infrastructure and other development projects.
Ruto made the proposal in New York on Monday, September 21, 2026, during the Africa We Build High-Level Roundtable on Regulation, Risk and Reward, held on the sidelines of the 81st session of the United Nations General Assembly.
The President argued that Africa’s growing challenge is no longer mainly a lack of capital, but the rules governing where available money can be invested.
Ramogi, however, said Kenya needs to exercise caution, particularly as younger workers continue to build their retirement savings.
“If we take the money that the millennials are contributing now and the Gen Zs are contributing, and we start playing with it carelessly, at that time we are manufacturing a crisis that we might not be able to get over,” he said.
He pointed to the proposed Kenya Pipeline Company (KPC) initial public offering as an example of how government influence could affect decisions involving pension funds.
Ramogi claimed that government influence had encouraged pension schemes to invest in KPC despite concerns from sections of the private sector over the company’s valuation and competition in the pipeline business.
“That tells you how government and political influence can make the pensioners’ money go into investments that are not worthwhile and will be affected negatively,” he said.
He also questioned the future value of such investments, pointing to competition from other infrastructure projects in the region.
“The point I’m trying to say is, I am uncomfortable with the president’s undue influence over the pensions and savings,” Ramogi said.
Kenya already permits retirement benefits schemes to invest in infrastructure-related assets under regulations overseen by the Retirement Benefits Authority (RBA).
The regulator says its investment guidelines are designed to protect retirement savings, generate returns and spread investment risks.
Under the current guidelines, retirement schemes can invest up to 10 per cent of their assets in debt instruments for infrastructure or affordable-housing projects approved under the Public Private Partnerships framework.
The schemes can also invest in East African government securities and infrastructure bonds, subject to the applicable investment limits.
Kenya’s retirement benefits sector had accumulated more than Sh3 trillion in assets by August 2026, according to the Retirement Benefits Authority.