{
  "id": 4019308,
  "title": "How retirees can use up to 50% of their pension for healthcare under govt’s new rules",
  "url": "https://urgent.news/2026/08/28/how-retirees-can-use-up-to-50-of-their-pension-for-healthcare-under",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-28T19:43:00.000Z",
  "source": {
    "name": "People Daily Kenya",
    "slug": "people-daily-kenya",
    "url": "https://peopledaily.digital/business/how-retirees-can-use-up-to-50-of-their-pension-for-healthcare-under-govts-new-rules"
  },
  "original_language": "en",
  "account": "Kenyan retirees can now allocate up to half of their accumulated retirement benefits into dedicated medical funds to help cover healthcare expenses after leaving employment, according to new regulations aimed at enhancing financial security during retirement. The Retirement Benefits (Post-Retirement Medical Funds) Regulations, 2026, enable eligible members to move a portion of their pension benefits into a registered post-retirement medical fund, ensuring that these funds are specifically earmarked for medical expenses. The regulations, issued under the Retirement Benefits Act, offer retirees the option to ring-fence a significant chunk of their pension for medical care, rather than relying solely on their remaining retirement income to handle rising healthcare costs. Under the new framework, a retiree with Ksh2 million in eligible accrued benefits could transfer up to Ksh1 million into a registered post-retirement medical fund, which would then be available for approved medical expenses rather than being paid out as regular retirement cash. The regulations also provide different provisions for those who have not yet retired, allowing for a transfer of up to 10 percent of accrued benefits before commutation for pension schemes other than provident funds. Contributions to these post-retirement medical funds can be made as a fixed amount or a percentage of employment income while the worker is still employed, enabling gradual accumulation of a healthcare reserve. The regulations stipulate that contributions to these funds are tax-deductible up to Ksh15,000 a month. Dependents may also access medical benefits from the fund, depending on the option selected by the member. The new framework is particularly significant as interest in post-retirement medical savings grows in Kenya, providing a structured way to protect retirement savings from depletion by medical expenses in later years.",
  "summary": "Kenyan retirees can now transfer up to half of their accrued retirement benefits into dedicated medical funds to help meet healthcare costs after leaving employment, under new regulations that seek to strengthen financial security in old age. The Retirement Benefits (Post-Retirement Medical Funds) Regulations, 2026, establish a framework for workers to save specifically for healthcare […]",
  "key_points": [
    "Kenyan retirees can allocate up to 50% of pension into medical funds.",
    "Retirees can transfer up to Ksh1 million from Ksh2 million pension.",
    "Contributions to medical funds are tax-deductible up to Ksh15,000 monthly."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}