ILO | Social Protection Platform

Situation and Priorities

Social protection situation

The social protection sector has seen progress, with policies shifting towards universal programmes with a lifecycle approach, although there are still significant coverage gaps in numbers and types of benefits, particularly within the informal economy which forms 83.6% of the workforce (2019).

Contributory social protection is administered through the Social Health Insurance Fund (SHIF) and the National Social Security Fund (NSSF), which provide access to health care and pensions (old-age, survivors, invalidity) respectively. Coverage of social security and benefit levels remain limited, as well as adequacy of benefits need to be addressed. In 2019, the former National Health Insurance Fund (NHIF) had 11 million members; NSSF had 4.2 million). In 2018, Kenya introduced a universal social pension for persons over the age of 70. Other targeted non-contributory programs for orphans, drought affected household and people with severe disabilities reached 12% of the population in 2023. Given the extensive informal economy, a national strategy for the extension of social protection to workers in the informal and rural economy have been developed by the Government and launched in 2023. Programs for workers in the informal economy include the SHIF and a voluntary saving scheme operated by NSSF (Haba Haba) launched in 2019. New benefits for workers in the informal economy, such as a maternity income benefit, have been designed. A priority for UN partners is the inclusion of refugees and asylum seekers into national social protection schemes and aligning partner provided assistance through the ESR.

COVID-19 and other crises

The economic impact of the coronavirus exposed the gaps within Kenya’s social protection system, where only 10.1% of the population is covered in at least one area. Approximately 1 million social assistance beneficiaries received a one-off payment of 8,000 Kenyan shillings (US$74). However, approximately 1.7 million Kenyans lost their jobs through June 2020, which hastened the demand for the establishment of an unemployment insurance fund, which will benefit formal sector workers. Overall, the effects of COVID-19 has increased the awareness of the importance of a comprehensive social protection system and has presented opportunities for progress in an already conducive political environment.

Visit the Social Protection COVID-19 Monitor

Government and social partner priorities

The Government of Kenya is playing a proactive role in the development of social protection. The revised National Social Protection Policy and the Social Protection Investment Plan have not yet been formally adopted (as of February 2022), however they will be aligned with ILO Recommendation 202 and Convention 102 and take a universal approach. Priorities include:

Extension of NHIF to currently uncovered groups (NHIF became mandatory in 2023)
Transition the NSSF from a provident fund into a full pension fund with higher contribution levels
Introduction of a universal child grant and disability benefit
Introduction of a maternity income benefit for women in the informal economy
Extension of social protection to the informal and rural economy workers
Extension of the Enhanced Single Registry and associated social assistance programs

ILO Projects and Programmes

Promoting Pathways to Economic Inclusion and Social Protection for Refugees and Host Communities in Kenya
30.09.2023 - 29.09.2024 USD ٢٬١٣٣٬٢٧٦ United States
Accelerating action for the elimination of child labour in supply chains in Africa (ACCEL-Africa) - Phase II
30.06.2023 - 30.06.2028 USD ٢٩٬٧٠٢٬٩٧٠ Netherlands
Country envelopes 2023 global project – Accelerating progress on HIV and AIDS and ending inequalities in the world of work
01.01.2023 - 31.12.2024 USD ٨٩٠٬١٩٦ UNAIDS
PROSPECTS - Inclusive jobs and education for refugees and host communities in Kenya
01.07.2019 - 30.06.2025 USD ١٦٬٥٠٦٬٩٢٢ Netherlands

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Results

Over the past 5 years, the ILO has provided technical guidance during the development of the Social Protection Investment Plan (2018), for the development of the National Monitoring and Evaluation Framework for Social Protection (2019), and the development of the National Social Protection Policy. The ILO has also engaged in advocacy efforts around the extension of social protection to the informal economy.