Years of pension savings could disappear within months when Kenyan retirees face serious illnesses, as the cost of cancer treatment and stroke care threatens to leave older people with less money for their basic needs, a new report has revealed.
The SanlamAllianz Retirement Benchmark Report Kenya 2026 shows that medical expenses can consume a substantial portion of retirement income, particularly for patients seeking treatment in private hospitals, where the cost of care can run into several years’ worth of pension payments.
According to the report, treating stage III cancer in a public hospital costs the equivalent of nine months of retirement income. A stroke admission in a public facility requires an amount equal to 11 months of income.
The financial demands increase sharply when patients seek care in private hospitals. Treatment for stage III cancer in a private facility costs the equivalent of 45 months of retirement income, while a stroke-related hospital admission can consume income equivalent to 99 months.
The calculations are based on a monthly retirement income benchmark of Sh21,900 in 2026, illustrating the extent to which a single medical emergency can disrupt the financial plans of a retiree.
“Common serious health conditions can generate medical expenses equivalent to many months, and in some cases several years, of pension income. The comparison illustrates how quickly a major illness or ongoing treatment can place pressure on retirement finances,” says the report.
The findings point to the difficulties facing older Kenyans who depend on pension payments and savings to finance their lives after employment. With regular earnings no longer available, unexpected medical expenses can force retirees to spend money that would otherwise support them throughout their retirement.
For those without adequate medical insurance or a separate reserve for healthcare, the cost of treatment could mean cutting back on essential household spending. Money intended for food, housing and other daily requirements may instead be used to pay hospital bills, purchase medicines or meet other treatment expenses.
The situation also raises questions about whether retirement plans adequately account for the cost of healthcare in old age, when serious illnesses can require expensive hospital admissions and continued medical attention.
Many retirees doubt their medical cover
The report found that healthcare expenses remain a source of anxiety among retired Kenyans, with a large proportion concerned about both the cost of treatment and the ability of their insurance policies to meet their medical needs.
Some 61 per cent of retired respondents said they were worried about the cost of healthcare or medicines. An equal proportion feared that their existing medical insurance would not provide sufficient cover.
The survey further established that 42 per cent of respondents found healthcare either difficult or very difficult to afford. Meanwhile, 24 per cent said they paid most of their medical bills directly from their own pockets.
These findings indicate that medical insurance alone may not prevent retirees from facing financial difficulties. Expenses such as insurance premiums, co-payments, prescription medicines and treatment costs that exceed policy limits can still eat into pension income and personal savings.
For retirees living on a fixed monthly income, meeting these additional costs can become particularly challenging when medical needs arise unexpectedly or require expensive treatment.
The report noted that although healthcare costs are already a concern, many people have yet to make firm financial arrangements to cover their medical needs after retirement.
“Healthcare is already on people’s minds, but concern has not yet translated into clear financial provision, medical expenses could compete with everyday living costs for the same pool of retirement income,” the report says.
The findings suggest that recognising the potential cost of healthcare does not always lead to practical steps to prepare for it. Without dedicated savings or sufficient insurance, retirees may have to compete for the same limited income to meet both medical bills and everyday household expenses.
The report also found that 53 per cent of respondents had either considered the cost of healthcare after retirement but had not begun saving for it, or had no plan at all to meet those expenses.
The lack of preparation leaves a substantial number of people exposed to medical costs that could undermine their financial stability in later life. The report's findings show that planning for retirement involves more than ensuring a regular income, as the cost of healthcare can determine how long those savings last.