The purpose of the plan is to provide retirement, savings and/ or investments benefits. The pension payments at retirement will either be paid as a cash lump sum or as annuity payments done either monthly or annually. The objective is to ensure that when the member retires, they continue getting paid a regular income just like when they had energy to work.

Personal Pension Plan

This is a specially designed savings plan to make provision for retirement. It enables one to build up funds by making periodic contributions into high yielding retirement fund to provide for retirement, savings and/or investment benefits.

Who may purchase?

• Anyone aged above 18 years.
• Self employed individuals, e.g. doctors, lawyers, engineers and business people etc
• Individuals without an employer’s savings or pension scheme
• Individuals keen on maximizing returns
• Small occupational schemes

How much do I contribute to the Scheme?

• The minimum monthly contribution is kshs. 2,000.00
• There is no maximum amount, i.e. the sky is the limit
• However, only contributions within the tax deductible limits as set out under the Income Tax (currently kshs. 20,000 per month) qualify for tax exemption.

What is the mode of payment?

• Remittances to the plan can be made either through:
• Personal cheques
• Bank Transfers/Bankers Order
• Electronic Fund Transfer
• Salary stop order through the employer.
• Depositing Cash into our account and presenting the pay-in-slip

What is the Contribution Frequency?

• Monthly
• Quarterly
• Half- Yearly
• Annually
• Lumpsum

When does one retire?

• Each person is free to determine the retirement age – once discretion:
• Early Retirement – 50
• Normal Retirement – 75 years.

What happens if contributions stop?

If money is tight you can take a break from payments until you find a new job.
In the meantime, the money you have already saved can be left to grow by earning investment income over the years.

You can start saving again into your pension any time you wish without being asked to pay the contributions in arrears.

What happens should I die prematurely?

They will be paid to the people you name on your application – nomination of your beneficiaries.

What will it cost?

To the Member

• Minimum Contribution is Kshs. 2,000, maximum is ones ability.
• Administration fees of 2 % of the fund value based on individual account
• Investment Charge of 1 % of the fund value based on individual account
• No hidden cost whatsoever. This is purely a savings plan.

To the Fund

• Legal levies (RBA Levy)
• Audit Fees (Annually)
• Actuarial Valuation as and when RBA deems fit


• By filling a proposal form
• Attaching a copy of the National Identity Card/Passport
• Payment of initial premium

Withdrawal from scheme

Members are at their discretion to withdraw from the plan at any time from their dates of commencement. Where the funds are deferred i.e. employer locked-up portion from another occupational pension plan the benefits will be treated in accordance with the Retirement Benefits.

Is there any rider attached to the plan?

The plan has no life rider but an optional Last Expense/Funeral Cash Cover. This is an annual/term benefits paid for separately and has two separate levels of benefits.

(i) Sum Assured of kshs. 100,000 for an additional annual premium of kshs. 1,200/- for ages 18 – 50 years while those 50 years and above will pay kshs. 1,800/-

(ii) Sum Assured of kshs. 250,000 for an additional annual premium of kshs. 3,000/- for ages 18 – 50 years while those 50 years and above will pay kshs. 4,500/-

Tax Advantages of investing in a Pension Plan

• Tax concessions on contributions.

• Where the Plan is salary-related, the maximum contribution payable is 30% of salary and the maximum relief is Kshs. 20,000 P.M or Kshs. 240,000 p.a. any amount above this limit is taxable.
• Employer’s contribution on behalf of the employees is considered as a business expense for taxation
• Tax-free amount on withdrawal is Kshs. 60,000 per year up to a maximum of Kshs. 600,000.
• Annual pension is tax-free up to a maximum of Kshs. 300,000 or Kshs. 25,000 per month.
• Investment income of the scheme is exempted from corporation tax.
• Pension received from unregistered retirement funds is tax exempt.
• Upon death of an employee who is a member of a registered scheme, the dependants qualify as a group to tax-exempt amounts.
• Where benefits are paid to an estate, the first Kshs. 1.0 Million is tax-free.
• Annual pension up to a maximum of Kshs. 300,000.00 per year is not chargeable to tax. The balance in excess of Kshs. 300,000.00 will be subject to withholding tax.
• If one opts for lump sum payment, benefits will be subjected to withholding tax at the individual Tax Brackets ranging between 10% to 30% depending on the total.
• Transfers between retirement schemes are not treated as withdrawals for tax purposes.

Benefits of setting up a pension scheme

Benefits to the Individual/Employee

  • Retirement Benefits Scheme contributions by an employee are tax allowable.
  • There is no state welfare support in Kenya. This leaves it upon an individual to fund his/her retirement.
  • The plan alleviates poverty among retirees
  • It enables retirees to be self-supporting, thereby not becoming a burden to their families and the society.
  • The plan provides a deliberate channel to invest for retirement.
  • It enables retirees to enjoy a stress free life after retirement.
  • It ensures that retirees are not confined to old age homes.
  • Results in increased life expectancy.

Client Services and Service Features

We provide the following services at no extra charge:

5.1 Administration
i) Record maintenance of membership information and production of annual list of members’ details
ii) Production of annual benefit statements for each member
iii) Organization of members’ meetings and explanation of scheme operations
iv) Pre-retirement advice and counseling
v) Advice on design of scheme benefits


(i) Deposit Administration has the unique advantage of offering irrevocable guarantees against capital depreciation, unlike segregated funds.

(ii) Additional Voluntary Contributions – through these arrangement employees are allowed to make additional contributions over and above the minimum funding level to enhance their future benefits.

5.2 Insurance Companies Pension Funds Analysis – 15 year average

The chart below shows the returns from investment of the pooled pension funds they are holding for the last 15 years. It also ranks them based on performance. Your pension plan will therefore be placed with the best company based on the strength and experience in the market.