What Happens to Your Pension When You Change Jobs in Kenya? A Complete Guide

Changing jobs in Kenya is now more common than ever, whether for better pay, career growth, or a healthier work environment. But while updating your CV and signing a new contract is exciting, many people forget one major question:

“What happens to my pension when I leave my job?”

If you have ever contributed to NSSF, an employer pension scheme, or both, this guide explains exactly what happens to your money and most importantly, how to avoid losing it.

1. Your Pension in Kenya Usually Falls Under Two Parts

1️⃣ NSSF (Public Pension)

This includes the new NSSF Tier I and Tier II contributions (as per the NSSF Act 2013). It follows you no matter where you work.

2️⃣ Employer Pension/Provident Fund (Private Pension)

Many employers have a pension scheme managed by insurers like ICEA Lion, Jubilee, Kenindia, Britam, Zamara, Octagon, etc. This is the part that requires decisions when you resign.

2. What Happens Immediately After You Leave Your Job?

When you resign or are terminated, your employer stops contributing to your pension. However:

Your pension money remains safe in the scheme.

You now have 4 options:

Leave the money in your old employer’s pension scheme
Transfer it to your new employer’s pension scheme
Transfer it to an Individual Pension Plan (IPP)
Withdraw part of it mostly 50% (your contributions and not the employer contributions) (tax rules apply)

3. Your 4 Options Explained

OPTION 1: Leave the Pension Where It Is

You are allowed to leave the money in the former employer's scheme until retirement. It continues to grow and earn investment returns.

Pros

No immediate paperwork or transfer fees.
Your money remains invested and continues to earn returns (depending on scheme policy).

Cons

Multiple deferred accounts across jobs can be hard to manage.
Some schemes charge administration fees on deferred accounts.

OPTION 2: Transfer to Your New Employer’s Pension Scheme

If your new employer also has a pension scheme, you can move your benefits from the old scheme to the new one, provided the receiving scheme accepts transfers.

This is called a pension portability transfer.

Benefits:

All your pension contributions stay in one place
Easier to track your total retirement savings
No tax is charged when transferring

OPTION 3: Transfer to an Individual Pension Plan (IPP)

You can move your pension from your old employer’s scheme to a personal pension plan such as:

ICEA Lion Individual Pension Plan
Britam Personal Pension Plan
Jubilee Personal Pension Plan
Zamara Fanaka Retirement Fund

Benefits:

You continue contributing even if you’re between jobs
You fully own and control the pension
It grows with compounding interest
You avoid losing track of funds from multiple jobs

👉 If you frequently change jobs, this is the BEST option.

OPTION 4: Withdraw Part of the Pension

Kenyan pension rules allow you to withdraw part of your pension, but with important restrictions:

Withdrawal Rules

You can withdraw your own contributions(50% of the fund) depending on vesting rules
Tax applies if you withdraw before age 50
Some schemes allow only partial withdrawal, not full exit

Warning: Withdrawing is usually the worst option because you lose retirement benefits and tax advantages.

4. What Happens to Your NSSF When You Change Jobs?

NSSF is very simple:

It follows you wherever you go.

Your new employer will simply continue contributing using your NSSF number. You do not lose anything.

You can also check your NSSF balance via:

NSSF App
NSSF Portal
*303# USSD

5. How to Transfer Your Pension When Changing Jobs

Transferring is straightforward. Here’s what you do:

STEP 1: Contact Your Previous Pension Administrator

Ask for your “pension benefit statement” and “transfer initiation form.”

STEP 2: Inform Your New Employer or IPP Provider

Provide them with your details so they can accept the transfer.

STEP 3: Fill Out a Transfer Request Form

The administrator will guide you. No tax is charged for transfers.

STEP 4: Funds Move From Old Scheme → New Scheme

This takes about 14–45 working days depending on the provider.

6. How Much of Your Employer’s Contributions Do You Get?

This depends on a concept called vesting period.

Example:

If you leave before 3 years → you may only get 50% of employer contributions
If you leave after 20 years → you may get 100%

Your pension statement will show your exact vesting schedule.

7. Important Don’ts When Changing Jobs

Don’t leave without requesting your pension statement
Don’t ignore the transfer, many Kenyans lose track of old pensions
Don’t withdraw unless it’s an absolute emergency
Don’t assume your money disappears, it stays safe by law

8. Recommended: Consolidate All Old Pensions

If you’ve worked in several companies, you may have:

Pension at ICEA Lion
Provident fund at Jubilee
Another at Zamara

🔵 Best practice: Consolidate into one Individual Pension Plan (IPP).

Helps you:

Track your retirement savings easily
Avoid losing dormant funds
Benefit from compounding growth

9. Sample Email to Request Pension Transfer

Subject: Request for Pension Transfer / Withdrawal Information Dear Sir/Madam, I hope this message finds you well. My name is [Your Name], ID [Number]. I was a member of your pension scheme under Employer: [Old Employer Name]. I would like to request the following: 1. My latest pension benefit statement 2. Details on my vested benefits 3. Transfer/withdrawal options available 4. The necessary forms to initiate the process Kindly advise on the next steps. Thank you, [Your Name] [Phone Number]

Final Advice

When changing jobs in Kenya:

Transfer your pension instead of withdrawing
Consolidate all old pensions into one plan
Track your NSSF and private plans regularly

Your pension is one of the most important assets you’ll ever build, don’t lose track of it.

Need help transferring or consolidating your pension?