All about Pension and Work, Pension and Wages, Pension and Salaries, Pension and Labour Laws in Kenya on AfricaPay Kenya.

The Pensions Act, Cap 189 Rev. 2009, provides for the granting and regulating of pensions, gratuities and other allowances in respect of the public service of officers under the Government of Kenya. 

In addition there are private retirement benefits schemes governed by the Retirement Benefits Act, 1997 through which private employers and their employees as members make contributions towards retirement. A Retirement Benefits Authority was established for the regulation, supervision and promotion of retirement benefits schemes, which have been largely taken up by formal employers and workers. 

What is a retirement benefits scheme?

Retirement benefits schemes are defined as any scheme or arrangement (other than a contract for life assurance), whether established by a written law or by any other instrument, under which persons are entitled to benefits in the form of payments, determined by age, length of service, amount of earnings or otherwise and payable primarily upon retirement, or upon death, termination of service, or upon the occurrence of such other event as may be specified.

Does the law allow for employees to be included in pension schemes? 

Section 9 and 10 of the Employment Act, 2007, specifies that an employee shall be employed under a contract of service which shall include pensions and pension schemes in which the employee is involved (section 10 (3) (iii)). This means that the law allows for employees to be included in pension schemes. 

What are pension benefits to a family upon the death of an employee?

Section 17 of The Pensions Act, provides for payment of pension benefits to dependants upon the death of an employee in service or on retirement on condition that the employee has worked for ten or more years’ service.

In case of formal workers (paragraph 19 of Payments of benefits to a nominated beneficiary, subsidiary to Retirement Benefits Act), the rules provide that on the death of a member the lump-sum benefits payable from the scheme shall be paid to the nominated beneficiary, and if the deceased member has not named a beneficiary then the trustees shall exercise their discretion in the distribution of the benefits to the dependants of the deceased member.

What are pension benefits to employees upon termination of employment? 

Kenya does not offer unemployment benefits, but there are circumstances in which pensions may be granted in the case of termination of employment. Section 6 (1) (f) of Pensions Act, grants for payment of pension, gratuity or other allowance, in the case of termination of employment in the public interest.

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