Banking / Financial Services
"Secure Pension Solutions for Kenya Power Employees"
The Kenya Power & Lighting Company Limited Staff Retirement Benefits Scheme (“The Fund”) was created under a Trust Deed executed on 1 January 1970. The Fund operates as a defined benefit occupational pension scheme, specifically designed for employees of the Kenya Power & Lighting Company Limited (“the Sponsor”), formerly known as the East Africa Power and Lighting Company Limited. Governed by a Trust Deed and Rules that have received approval from the Retirement Benefits Authority (RBA), the Fund’s primary objective is to provide retirement cash benefits and pensions to members upon reaching the age of 60, with additional benefits extended to dependents of deceased members where applicable. Recognized as one of Kenya’s largest and most established pension funds, the Fund maintains a mature membership profile, with a significant proportion of active members, pensioners, and deferred pensioners over the age of 50, outnumbering younger active participants.
The Fund holds approval from the Kenya Revenue Authority (KRA) as a retirement benefits scheme under Income Tax (Retirement Benefits) Rule No. 4, qualifying it as an ‘exempt approved scheme’ under the relevant legislation (1st Schedule 14).
Fund Benefits
The Fund ceased accepting new members and contributions from existing members effective 30 June 2006. As a closed defined benefit registered scheme, members retiring on their normal retirement date receive a pension calculated at 1/400 of their final pensionable emoluments for each complete month of service up to 31 December 1999, and 1/600 of final pensionable emoluments for each month of service from 1 January 2000 until the scheme’s closure. Members departing before the normal retirement age may opt to receive 50% of their accrued benefits or transfer them to another pension fund. In the event of a member’s death, eligible beneficiaries are entitled to a lump sum payment and ongoing monthly pension benefits.
Membership
The Fund’s membership includes active employees who were employed by the Sponsor as of June 2006, deferred members, and retirees.
Fund Governance
The Fund is administered by a Board of Trustees, established in accordance with the Trust Deed and the Retirement Benefits Act. Operational management is handled by the Secretariat, which supports the Board in fulfilling its mandate. Led by the Trust Secretary, the Secretariat collaborates with external service providers, including fund managers, custodians, actuaries, legal advisors, and auditors, to ensure effective fund administration.
