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Kenya Act or statute

Parliament of Kenya

Retirement Benefits Act

This Act may be cited as the Retirement Benefits Act. Provides interpretations and definitions of terms used in the Act. The Authority must pay members of the Board remuneration, fees or allowances for expenses, in…

Jurisdiction
Kenya
Structure
73 provisions
Citation
Cap. 197
Dates
As at 20 Jun 2025
More statute details
Dates
As at 20 Jun 2025

Source attribution: Source: Kenya Law

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01

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“This Act may be cited as the Retirement Benefits Act.”

This Act may be cited as the Retirement Benefits Act. Provides interpretations and definitions of terms used in the Act. The Authority must pay members of the Board remuneration, fees or allowances for expenses, in consultation with the Cabinet Secretary. The Board shall appoint a Chief Executive Officer (in consultation with the Cabinet Secretary) and determine the CEO’s terms; the CEO must have at least ten years' managerial experience in specified sectors; the CEO is an ex officio (non-voting) member and is responsible for day-to-day management subject to Board directions. The Board must appoint a secretary to the Board; the Board may appoint officers or servants necessary to discharge the Authority's functions, on terms and conditions it determines.

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Showing 73 of 73 provisions

Provision 57Offence 11Commencement 3Short title

Part I

PRELIMINARY

§ 1PRELIMINARY - 1. Short titleShort title

This Act may be cited as the Retirement Benefits Act.

Section 1. Short title Section This Act may be cited as the Retirement Benefits Act.
Section 1Verify source
§ 2PRELIMINARY - 2. InterpretationInterpretation

Provides interpretations and definitions of terms used in the Act.

Section 2. Interpretation Section In this Act, unless the context otherwise requires— “actuary” means a person who is a Fellow of the Institute of Actuaries in England, or the Faculty of Actuaries in Scotland, or the Canadian Institute of Actuaries, or the Society of Actuaries of the United States of America or the Institute of Actuaries of Japan or the Institute of Actuaries of Australia or a person holding such equivalent qualification as the Board may, by notice in the Gazette , prescribe; “administrator” means a person appointed by trustees to administer a scheme in accordance with such terms and conditions of service as may be specified in the instrument of appointment; “authority” means the Retirement Benefits Authority established by section 3 ; “Board” means the Board of Directors of the Authority constituted under section 6 ; “Cabinet Secretary” means the Cabinet Secretary for the time being responsible for matters relating to Finance; “Chief Executive Officer” means the Chief Executive Officer of the Authority appointed under section 11 ; "corporate trustee" means a limited liability company incorporated under the Companies Act ( Cap. 486 ), which is, for the time being, empowered under any written law, its charter, memorandum of association, deed of settlement or other instrument constituting it or defining its powers to mainly undertake trusts, and includes a trust corporation; “custodian” means a company whose business includes taking responsibility for the safe custody of the funds, securities, financial instruments and documents of title of the assets of scheme funds; “financial year” — (a) in relation to the Authority, has the meaning assigned to it in section 19 ; (b) in relation to a scheme , means such accounting period as may be prescribed in the scheme rules ; “Fund” means the Retirement Benefits Authority Fund established by section 17 ; “Levy” means the Retirement Benefits Levy to be imposed under section 16 ; “manager” means a company whose business includes— (i) undertaking, pursuant to a contract or other arrangement, the management of the funds and other assets of a scheme fund for purposes of investment; (ii) providing consultancy services on the investment of scheme funds; or (iii) reporting or disseminating information concerning the assets available for investment of scheme funds; “member” means a member of a retirement benefits scheme and includes a person entitled to or receiving a benefit under a retirement benefits scheme ; “pooled fund” means a fund established by a limited liability company, other than an approved issuer, for purposes of pooling scheme funds for collective investment; "post-retirement medical fund" means a fund established under this Act into which contributions are made and from which costs of medical benefits can be met in accordance with the medical fund rules; “retirement benefits scheme” means any scheme or arrangement (other than a contract for life assurance) whether established by a written law for the time being in force or by any other instrument, under which persons are entitled to benefits in the form of payments or post-retirement medical cover 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 in such written law or other instrument; “scheme” means a retirement benefits scheme ; “scheme fund” means the retirement benefits scheme fund to be established pursuant to the provisions of section 32 ; “scheme rules” means the rules specifically governing the constitution and administration of a particular scheme ; “sponsor” means a person who establishes a scheme ; “statutory fund” has the meaning assigned to it in section 2 of the Insurance Act ( Cap. 487 ); “terrorism financing” has the meaning assigned to it under the Prevention of Terrorism Act ( Cap. 59B ); “Tribunal” means the Appeals Tribunal established under section 48 ; “trust corporation” means a company incorporated under the Companies Act ( Cap. 486 ) having a subscribed capital of not less than ten million shillings and which is for the time being empowered (by or under any written law, its charter, memorandum of association, deed of settlement or other instrument constituting it or defining its powers) to undertake trusts: Provided that such company does not, by any prospectus, circular, advertisements, or other documents issued by it or on its behalf, state or hold out that any liability attaches to the Public Trustee or to the Consolidated Fund in respect of any act or omission of the company when acting as an executor or administrator ; “trustee” means a trustee of a scheme fund and includes a trust corporation . ( Act No. 7 of 1998 , s. 2, Act No. 4 of 1999 , s. 105A, Act No. 8 of 2003 , s. 2, Act No. 2 of 2006 , s. 2, Act No. 8 of 2021 , s. 60, Act No. 6 of 2025 , Sch.)
Section 2Verify source

Part II

THE RETIREMENT BENEFITS AUTHORITY

§ 10THE RETIREMENT BENEFITS AUTHORITY - 10. Remuneration ofBoardmembersProvision

The Authority must pay members of the Board remuneration, fees or allowances for expenses, in consultation with the Cabinet Secretary.

Section 10. Remuneration ofBoardmembers Section The Authority, in consultation with the Cabinet Secretary shall pay members of the Board such remuneration, fees or allowances for expenses as it may determine.
Section 10Verify source
§ 11THE RETIREMENT BENEFITS AUTHORITY - 11. TheChief Executive OfficerProvision

The Board shall appoint a Chief Executive Officer (in consultation with the Cabinet Secretary) and determine the CEO’s terms; the CEO must have at least ten years' managerial experience in specified sectors; the CEO is an ex officio (non-voting) member and is responsible for day-to-day management subject to Board directions.

Section 11. TheChief Executive Officer Section 11(1) There shall be a Chief Executive officer who shall be appointed by the Board in consultation with the Cabinet Secretary and whose terms and conditions of service shall be determined by the Board in the instrument of appointment or otherwise in writing from time to time. Section 11(2) No person shall be appointed under this section unless he has at least ten years experience in a managerial capacity in the retirements benefits, accounting, finance, insurance or the banking sectors. Section 11(3) The Chief Executive Officer shall be an ex officio member of the Board but shall have no right to vote at any meeting of the Board . Section 11(4) The Chief Executive Officer shall, subject to the directions of the Board , be responsible for the day to day management of the affairs of the Authority.
Section 11Verify source
§ 12THE RETIREMENT BENEFITS AUTHORITY - 12. Staff of the AuthorityProvision

The Board must appoint a secretary to the Board; the Board may appoint officers or servants necessary to discharge the Authority's functions, on terms and conditions it determines.

Section 12. Staff of the Authority Section 12(1) The Board shall appoint a secretary to the Board on such terms and conditions of service as the Board may determine. Section 12(2) The Board may appoint such officers or servants as are necessary for the proper discharge of the functions of the Authority under this Act or any other written law, upon such terms and conditions of service as the Board may determine.
Section 12Verify source
§ 13THE RETIREMENT BENEFITS AUTHORITY - 13. The Common Seal of the AuthorityProvision

The section provides that the Authority's common seal must be kept in custody as the Board directs, may not be used except by order of the Board, and that a duly authenticated seal on a document is judicially and officially noticed.

Section 13. The Common Seal of the Authority Section 13(1) The common seal of the Authority shall be kept in such custody as the Board may direct and shall not be used except on the order of the Board . Section 13(2) The common seal of the Authority when affixed to a document and duly authenticated shall be judicially and officially noticed and unless and until the contrary is proved, any necessary order or authorisation by the Board under this section shall be presumed to have been duly given.
Section 13Verify source
§ 14THE RETIREMENT BENEFITS AUTHORITY - 14. Protection from personal liabilityProvision

Members of the Board and officers, employees or agents of the Authority (and persons acting on their directions) are protected from personal liability for acts done bona fide in executing the Authority's functions, powers or duties.

Section 14. Protection from personal liability Section No matter or thing done by a member of the Board or any officer, employee or agent of the Authority shall, if the matter or thing is done bona fide for executing the functions, powers or duties of the Authority, render the member , officer, employee or agent or any person acting on their directions personally liable to any action, claim or demand whatsoever.
Section 14Verify source
§ 15THE RETIREMENT BENEFITS AUTHORITY - 15. Liability of the Authority for damagesProvision

The Authority must pay compensation or damages to any person for injury to them, their property, or their interests caused by exercising powers under this Act or other written law, or by partial or total failure of works.

Section 15. Liability of the Authority for damages Section The provisions of this Act shall not relieve the Authority of the liability to pay compensation or damages to any person for any injury to him, his property or any of his interest caused by the exercise of any power conferred by this Act or any other written law or by the failure, whether wholly or partially, of any works.
Section 15Verify source
§ 16THE RETIREMENT BENEFITS AUTHORITY - 16. The Retirement BenefitsLevyProvision

The Cabinet Secretary may, in consultation with the Board and by order published in the Gazette, impose a Retirement Benefits Levy on scheme contributions, fund assets, or another base; unpaid levy amounts may be recovered by the Authority and a late addition of five per centum per month applies.

Section 16. The Retirement BenefitsLevy Section 16(1) The Cabinet Secretary may, in consultation with the Board , by order published in the Gazette , impose a levy to be known as the Retirement Benefits Levy on the contributions made to scheme funds, or on the assets of such funds, or on such other base as he may determine. Section 16(2) A levy imposed under this section shall be payable at such rate as may be specified in the order. Section 16(3) An order under this section may contain provisions as to the time at which any amount payable by way of the levy shall become due. Section 16(4) All moneys received in respect of the levy shall be paid into the Fund and if not paid on or before the date prescribed by the order, the amount due and any sum payable under subsection (5) shall be a civil debt recoverable summarily by the Authority. Section 16(5) If a person fails to pay any amount payable by him by way of the levy on or before the date prescribed by the order, a sum equal to five per centum of the amount shall be added to the amount due for each month or part thereof during which the amount due remains unpaid.
Section 16Verify source
§ 17THE RETIREMENT BENEFITS AUTHORITY - 17. The Retirement Benefits AuthorityFundProvision

Establishes the Retirement Benefits Authority Fund and vests it in the Authority; lists sources of the Fund including levy proceeds, moneys/assets accruing to the Authority, payments, Cabinet Secretary grants, and other donations or loans; provides for Parliament-funded grants towards Board expenditure.

Section 17. The Retirement Benefits AuthorityFund Section 17(1) There is established a fund to be known as the Retirement Benefits Authority Fund which shall vest in the Authority. Section 17(2)(a) all proceeds of the levy established by section 16 ; Section 17(2)(b) such moneys or assets as may accrue to or vest in the Authority in the course of the exercise of its powers or the performance of its functions under this Act; Section 17(2)(c) such sums as may be payable to the Authority pursuant to this Act or any other written law, or pursuant to any gift or trust; Section 17(2)(d) such sums as may be granted to the Authority by the Cabinet Secretary pursuant to subsection (3) ; and Section 17(2)(e) all moneys from any other source provided for or donated or lent to the Authority. Section 17(3) There shall be made to the Authority out of moneys provided by Parliament for that purpose, grants towards the expenditure incurred by the Board in the exercise of its powers of the performance of its functions under this Act.
Section 17Verify source
§ 18THE RETIREMENT BENEFITS AUTHORITY - 18. Investment of funds of the AuthorityProvision

The Authority may invest its funds in approved securities or place unused moneys on deposit with banks it determines.

Section 18. Investment of funds of the Authority Section 18(1) The Authority may invest any of its funds in securities which for the time being trustees may by law invest trust funds, or in any other securities which the Treasury may, from time to time, approve. Section 18(2) The Authority may place on deposit with such bank or banks as it may determine, any moneys not immediately required for the purposes of the Authority.
Section 18Verify source
§ 19THE RETIREMENT BENEFITS AUTHORITY - 19. Financial yearProvision

The Authority's financial year is the period of twelve months ending on the thirtieth June in each year.

Section 19. Financial year Section The financial year of the Authority shall be the period of twelve months ending on the thirtieth June in each year.
Section 19Verify source
§ 20THE RETIREMENT BENEFITS AUTHORITY - 20. Annual estimatesCommencement

The Board must prepare annual revenue and expenditure estimates before each financial year; after Board approval the Authority may not increase those estimates without the Cabinet Secretary's consent.

Section 20. Annual estimates Section 20(1) Before the commencement of each financial year , the Board shall cause to be prepared estimates of revenue and expenditure of the Authority for that year. Section 20(2)(a) the payment of the salaries, allowances and other charges in respect of the staff of the Authority; Section 20(2)(b) the payment of pensions, gratuities and other charges in respect of the retirement benefits which are payable out of the funds of the Authority; Section 20(2)(c) the proper maintenance of the buildings and grounds of the Authority; Section 20(2)(d) the maintenance, repair and replacement of the equipment and other property of the Authority; Section 20(2)(e) the creation of such reserve funds to meet future or contingent liabilities in respect of retirement benefits, insurance or replacement of buildings or equipment, or in respect of such other matter as the Board may deem appropriate. Section 20(3) The annual estimates shall be prepared at least three months before commencement of the financial year to which they relate and shall be submitted to the Board for approval and after such approval, the Authority shall not increase the annual estimates without the consent of the Cabinet Secretary . Section 20(4) No expenditure shall be incurred for the purposes of the Board except in accordance with the annual estimates approved under this section or in pursuance of an authorisation of the Authority given with the prior approval of the Cabinet Secretary .
Section 20Verify source
§ 21THE RETIREMENT BENEFITS AUTHORITY - 21. Accounts and auditProvision

The Authority must keep full books and records of account; it must prepare statements of income and expenditure and of assets and liabilities for the year; the accounts must be audited by the Auditor‑General under the Public Audit Act.

Section 21. Accounts and audit Section 21(1) The Authority shall cause to be kept all proper books and records of account of the income, expenditure and assets of the Authority. Section 21(2)(a) a statement of income and expenditure during that year; and Section 21(2)(b) a statement of the assets and liabilities of the Authority on the last day of that year. Section 21(3) The accounts of the Authority shall be audited and reported upon in accordance with the Public Audit Act ( Cap. 412B ) by the Auditor-General.
Section 21Verify source
§ 3THE RETIREMENT BENEFITS AUTHORITY - 3. Establishment and incorporation of the Retirement Benefits AuthorityProvision

Establishes the Retirement Benefits Authority and lists corporate powers including suing and being sued; acquiring, holding and disposing of property; borrowing and lending money; and performing other lawful corporate acts to further the Act.

Section 3. Establishment and incorporation of the Retirement Benefits Authority Section 3(1) There is established an Authority to be known as the Retirement Benefits Authority. Section 3(2)(a) suing and be sued; Section 3(2)(b) taking, purchasing or otherwise acquiring, holding, charging or disposing of movable and immovable property; Section 3(2)(c) borrowing or lending money; and Section 3(2)(d) doing or performing all other things or acts for the furtherance of the provisions of this Act, which may be lawfully done or performed by a body corporate.
Section 3Verify source
§ 4THE RETIREMENT BENEFITS AUTHORITY - 4. HeadquartersProvision

The Authority must have its headquarters in Nairobi.

Section 4. Headquarters Section The headquarters of the Authority shall be in Nairobi.
Section 4Verify source
§ 5THE RETIREMENT BENEFITS AUTHORITY - 5. Object and functions of the AuthorityProvision

The Authority must regulate and supervise the establishment and management of retirement benefits schemes.

Section 5. Object and functions of the Authority Section regulate and supervise the establishment and management of retirement benefits schemes;
Section 5Verify source
§ 5ATHE RETIREMENT BENEFITS AUTHORITY - 5A. Assistance in investigationOffence

The section enables assistance in investigations and preserves the Authority's power to co-operate or co-ordinate with other regulatory bodies so long as that co-operation is not contrary to the Act's objectives.

Section 5A. Assistance in investigation Section 5A(1)(a) are enforced or administered by that regulatory body; or Section 5A(1)(b) relate to transactions regulated by that regulatory body, Section 5A(2) For the purposes of subsection (1) , the provisions of this Act shall, with such modifications as may be necessary, apply and have effect as if the contravention of the legal or regulatory requirement referred to in subsection (1) were an offence under this Act. Section 5A(3)(a) it is desirable or expedient that the assistance requested should be provided in the interest of the public; or Section 5A(3)(b) the assistance shall assist the regulatory body in the discharge and performance of its functions. Section 5A(4)(a) pay the Authority any of the costs and expenses incurred in providing the assistance; and Section 5A(4)(b) be able and willing to provide reciprocal assistance within its jurisdiction in response to a similar request for assistance from Kenya. Section 5A(5) Nothing in this section shall be construed as limiting the powers of the Authority to co-operate or co-ordinate with any other regulatory body in the exercise of its powers under this Act, in so far as any such co-operation or co-ordination is not contrary to the objectives of this Act.
Section 5AVerify source
§ 5BTHE RETIREMENT BENEFITS AUTHORITY - 5B. Authority may investigateOffence

The Authority may investigate and must in writing depute a qualified person to conduct investigations; a person who contravenes subsection (2) commits an offence.

Section 5B. Authority may investigate Section 5B(1)(a) an offence has been committed under this Act; or Section 5B(1)(b) a manager , custodian , trustee or an administrator may have engaged in embezzlement, fraud, misfeasance or other misconduct in connection with its regulated activity; or Section 5B(1)(c) the manner in which a manager , custodian , trustee or an administrator has engaged or is engaging in the regulated activity is not in the interest of the person's clients or in the public interest, the Authority shall in writing depute a suitably qualified person to conduct investigations into the matter on behalf of the Authority. Section 5B(2)(a) to produce to the investigator, within such time and at such place as the investigator may require in writing, any record or document specified by the investigator which is, or may be, relevant to the investigation, and which is in the possession or under the control of that person; Section 5B(2)(b) to give an explanation or further particulars in respect of any record or document produced under paragraph (a) ; Section 5B(2)(c) to attend before the investigator at the time and place specified in writing by the investigator, and to the best of his ability under oath or affirmation answer any question relating to the matters under investigation as the investigator may put to him; and Section 5B(2)(d) to assist the investigator with the investigation to the best of the person's ability. Section 5B(3) A person who contravenes the provisions of subsection (2) commits an offence.
Section 5BVerify source
§ 6THE RETIREMENT BENEFITS AUTHORITY - 6.Boardof DirectorsProvision

The Cabinet Secretary must appoint a chairperson from among the members appointed under paragraph (f).

Section 6.Boardof Directors Section a chairperson to be appointed by the Cabinet Secretary from amongst the members appointed under paragraph (f) ;
Section 6Verify source
§ 7THE RETIREMENT BENEFITS AUTHORITY - 7. Powers of theBoardProvision

theBoard has the power to control, supervise and administer the assets of the Authority.

Section 7. Powers of theBoard Section control, supervise and administer the assets of the Authority in such manner and for such purposes as best promote the purpose for which the Authority is established;
Section 7Verify source
§ 7ATHE RETIREMENT BENEFITS AUTHORITY - 7A. Powers of anti-money laundering and countering the financing of terrorism purposesProvision

The Authority must regulate, supervise and enforce anti‑money laundering, counter‑terrorism financing and counter‑proliferation financing compliance for reporting institutions.

Section 7A. Powers of anti-money laundering and countering the financing of terrorism purposes Section 7A(1) Pursuant to sections 2A , 36A , 36B and 36C of the Proceeds of Crime and Anti-Money Laundering Act ( Cap. 59A ), the Authority shall regulate, supervise and enforce compliance for antimoney laundering, combating the financing of terrorism and countering proliferation financing purposes by all reporting institutions regulated and supervised by the Authority and to whom the provisions of the Proceeds of Crime and Anti-Money Laundering Act ( Cap. 59A ) apply. Section 7A(2)(a) vet proposed significant shareholders, proposed beneficial owners, proposed directors and senior officers of a reporting institution; Section 7A(2)(b) conduct onsite inspection; Section 7A(2)(c) conduct offsite surveillance; Section 7A(2)(d) undertake consolidated supervision of an institution and its group; Section 7A(2)(e) compel the production of any document or information the Authority may require for the purpose of discharging its supervisory mandate under the Proceeds of Crime and Anti-Money Laundering Act ( Cap. 59A ); Section 7A(2)(f) impose monetary, civil or administrative sanctions for violations related to antimoney laundering, combating the financing of terrorism or countering proliferation financing purposes; Section 7A(2)(g) issue regulations, guidelines, directions, rules or instructions for anti-money laundering, combating the financing of terrorism and countering proliferation financing purposes; Section 7A(2)(h) co-operate and share information for anti-money laundering, combating the financing of terrorism and countering proliferation financing purposes; and Section 7A(2)(i) take such action as is necessary to supervise and enforce compliance by reporting institutions in line with the provisions of the Proceeds of Crime and Anti-Money Laundering Act ( Cap. 59A ) and any regulations, guidelines, rules, instruction or direction made or issued thereunder. Section 7A(3) For purposes of this section, “reporting institution” has the meaning assigned to it under section 2 of the Proceeds of Crime and Anti-Money Laundering Act ( Cap. 59A ).
Section 7AVerify source
§ 7BTHE RETIREMENT BENEFITS AUTHORITY - 7B. Penalties for violations relating to money laundering andterrorism financingOffence

Certain persons in a scheme or scheme fund must not violate or fail to comply with anti-money laundering and terrorism financing regulations, with specified monetary penalties for legal persons, natural persons, and daily continuing breaches.

Section 7B. Penalties for violations relating to money laundering andterrorism financing Section 7B(1) No member , manager , custodian , administrator or any other person in a scheme or scheme fund shall violate or fail to comply with the regulations, guidelines, directions, rules or instructions issued for anti-money laundering, combating the financing of terrorism and countering proliferation financing purposes. Section 7B(2)(a) in case of a legal person, to a penalty not exceeding five million shillings; Section 7B(2)(b) in the case of a natural person, to a penalty not exceeding one million shillings; and Section 7B(2)(c) to additional penalties not exceeding one hundred thousand shillings in each case for each day or part thereof during which such violation or non-compliance continues.
Section 7BVerify source
§ 8THE RETIREMENT BENEFITS AUTHORITY - 8. Conduct of business and affairs of theBoardProvision

The conduct and regulation of the Board's business and affairs is provided in the Schedule; subject to that, the Board shall regulate its own procedure.

Section 8. Conduct of business and affairs of theBoard Section The conduct and regulation of the business and affairs of the Board shall be as provided in the Schedule but subject thereto, the Board shall regulate its own procedure.
Section 8Verify source
§ 9THE RETIREMENT BENEFITS AUTHORITY - 9. Delegation by theBoardProvision

The Board may, by resolution, delegate any of the Authority's powers or functions to a committee or to any member, officer, employee or agent of the Authority.

Section 9. Delegation by theBoard Section The Board may, by resolution either generally or in any particular case, delegate to any committee of the Board or to any member , officer, employee or agent of the Authority, the exercise of any of the powers or the performance of any of the functions or duties of the Authority under this Act or under any other written law.
Section 9Verify source

Part III

REGISTRATION OF RETIREMENT BENEFITS SCHEMES, MANAGERS, CUSTODIANS AND ADMINISTRATORS

§ 22REGISTRATION OF RETIREMENT BENEFITS SCHEMES, MANAGERS, CUSTODIANS AND ADMINISTRATORS - 22. Retirement benefits schemes, managers, corporate trustees, custodians and administrators to be registeredProvision

Section 22 requires registration: persons must not establish a retirement benefits scheme except under this Act and must not act as manager, corporate trustee, custodian or administrator unless registered and holding a valid certificate; the Authority must publish a yearly list of registered managers, trustees, custodians and administrators.

Section 22. Retirement benefits schemes, managers, corporate trustees, custodians and administrators to be registered Section 22(1) No person shall establish a retirement benefits scheme except in accordance with the provisions of this Act and under the authority of a certificate issued under this Act. Section 22(2) No person shall act as a manager , corporate trustee ("a limited liability company incorporated under(), which is, for the time being, empowered under any written law, its charter, memorandum of association, deed of settlement or other instrument constituting it or defining its powers to mainly undertake trusts, and includes a trust corporation;") , custodian or administrator unless such person is registered under this Act and holds a valid certificate of registration issued pursuant to the provisions of this Act. Section 22(2A) The provisions relating to administrators under subsection (2) shall not apply to natural persons who are employees of a scheme. Section 22(3) The Authority shall, in consultation with the Cabinet Secretary , by notice in the Gazette and by public advertisement in at least one daily newspaper of wide circulation, publish a list of all registered managers, corporate trustees, custodians and administrators at least once in every calendar year. Section 22(4)(a) establishes a retirement benefits scheme ; or Section 22(4)(b) acts as a manager , corporate trustee ("a limited liability company incorporated under(), which is, for the time being, empowered under any written law, its charter, memorandum of association, deed of settlement or other instrument constituting it or defining its powers to mainly undertake trusts, and includes a trust corporation;") or custodian ,
Section 22Verify source
§ 22AREGISTRATION OF RETIREMENT BENEFITS SCHEMES, MANAGERS, CUSTODIANS AND ADMINISTRATORS - 22A. Criteria for suitabilityProvision

The Authority must give a person an opportunity to be heard before determining whether they are fit and proper under this Act.

Section 22A. Criteria for suitability Section 22A(1)(a) financial status or solvency of the person; Section 22A(1)(b) educational or other qualifications or experience of the person, having regard to the nature of the functions which, if the application is granted, the person shall perform; Section 22A(1)(c) status of any other licence or approval granted to the person by any financial sector regulator; Section 22A(1)(d) ability of the person to carry on the regulated activity competently, honestly and fairly; and Section 22A(1)(e) in the case of a natural person, of that individual; or Section 22A(1)(e)(i) in the case of a natural person, of that individual; or Section 22A(1)(e)(ii) in the case of a company, of the company, its chairperson, directors, chief executive, management and all other personnel including all duly appointed agents, and any substantial shareholder of the company, if the chairperson, director, chief executive, management or the personnel are shareholders of the company. Section 22A(2)(a) has contravened the provision of any law, in Kenya or elsewhere, designed for the protection of members of the public against financial loss due to dishonesty, incompetence, or malpractice by persons engaged in transacting with marketable securities; Section 22A(2)(a)(i) has contravened the provision of any law, in Kenya or elsewhere, designed for the protection of members of the public against financial loss due to dishonesty, incompetence, or malpractice by persons engaged in transacting with marketable securities; Section 22A(2)(a)(ii) was a director of a licensed person who has been liquidated or is under liquidation or statutory management; Section 22A(2)(a)(iii) has taken part in any business practice which, in the opinion of the Authority, was fraudulent prejudicial to the market or public interest, or was otherwise improper, which would otherwise discredit the person's methods of conducting business; or Section 22A(2)(a)(iv) has taken part or has been associated with any business practice which casts doubt on the competence or soundness of judgment of that person; or Section 22A(2)(a)(v) has acted in such a manner as to cast doubt on the person's competence and soundness of judgment; Section 22A(2)(b) any other company in the same group of companies; or Section 22A(2)(b)(i) any other company in the same group of companies; or Section 22A(2)(b)(ii) where the applicant is a company in a group of companies— Section 22A(2)(c) take into account whether the applicant has established effective internal control procedures and risk management systems to ensure its compliance with all applicable regulatory requirements; and Section 22A(2)(d) have regard to the state of affairs of any other business which the person carries on or purports to carry on. Section 22A(3) The Authority shall give a person an opportunity to be heard before determining whether a person is fit and proper for the purposes of this Act. Section 22A(4) For the purposes of this section, "group of companies" means any two or more companies one of which is the holding company of the others.
Section 22AVerify source
§ 23REGISTRATION OF RETIREMENT BENEFITS SCHEMES, MANAGERS, CUSTODIANS AND ADMINISTRATORS - 23. RegistrationProvision

Persons proposing to establish a retirement benefits scheme or to act as a manager, corporate trustee, custodian or administrator must apply to the Authority and obtain a certificate of registration before establishing the scheme or commencing those functions.

Section 23. Registration Section 23(1) A person proposing to establish a retirement benefits scheme or to act as a manager , corporate trustee ("a limited liability company incorporated under(), which is, for the time being, empowered under any written law, its charter, memorandum of association, deed of settlement or other instrument constituting it or defining its powers to mainly undertake trusts, and includes a trust corporation;") , a custodian or an administrator shall apply to the Authority for, and obtain, a certificate of registration before establishing the scheme or commencing the performance of any of the functions of a manager , corporate trustee ("a limited liability company incorporated under(), which is, for the time being, empowered under any written law, its charter, memorandum of association, deed of settlement or other instrument constituting it or defining its powers to mainly undertake trusts, and includes a trust corporation;") , a custodian or an administrator . Section 23(2)(a) addressed to the Chief Executive Officer ; Section 23(2)(b) in the prescribed form; and Section 23(2)(c) accompanied by the prescribed fee. Section 23(3) In considering an application under this section, the Authority may request the applicant to supply such additional information as it considers necessary in determining the application. Section 23(4) The Authority may, subject to the provisions of this Act and on payment of the prescribed fee, register the applicant and issue to the applicant a certificate of registration in the prescribed form, authorising the applicant to establish a retirement benefits scheme , or to act as a manager , corporate trustee ("a limited liability company incorporated under(), which is, for the time being, empowered under any written law, its charter, memorandum of association, deed of settlement or other instrument constituting it or defining its powers to mainly undertake trusts, and includes a trust corporation;") , a custodian or an administrator as the case may be. Section 23(5) A certificate issued under this section shall be subject to such conditions as the Authority may, in consultation with Cabinet Secretary , impose.
Section 23Verify source
§ 24REGISTRATION OF RETIREMENT BENEFITS SCHEMES, MANAGERS, CUSTODIANS AND ADMINISTRATORS - 24. Requirements for registration of schemesProvision

A scheme may not be registered unless its trustees satisfy the requirements specified in section 26.

Section 24. Requirements for registration of schemes Section 24(1)(a) it is proposed to be established under an irrevocable trust; and Section 24(1)(b) the proposed scheme rules adequately protect the rights and interests of the sponsors and members thereof. Section 24(2) No scheme shall be registered under this Act unless the trustees thereof satisfy the requirements specified in section 26 .
Section 24Verify source
§ 25REGISTRATION OF RETIREMENT BENEFITS SCHEMES, MANAGERS, CUSTODIANS AND ADMINISTRATORS - 25. Requirements for registration of managers and custodiansProvision

Defines 'Section' as a limited liability company, incorporated under the Companies Act (Cap. 486), limited by shares, and whose main object is to manage scheme funds.

Section 25. Requirements for registration of managers and custodians Section is a limited liability company incorporated under the Companies Act ( Cap. 486 ) whose liability is limited by shares and whose main object is to manage scheme funds;
Section 25Verify source
§ 25AREGISTRATION OF RETIREMENT BENEFITS SCHEMES, MANAGERS, CUSTODIANS AND ADMINISTRATORS - 25A. Requirements for registration of custodiansProvision

Defines "Section" as a limited liability company incorporated under the Companies Act (Cap. 486) whose main function is to perform the functions of a custodian within the meaning of this Act.

Section 25A. Requirements for registration of custodians Section is a limited liability company incorporated under the Companies Act ( Cap. 486 ) whose main function is to perform the functions of a custodian within the meaning of this Act;
Section 25AVerify source
§ 25BREGISTRATION OF RETIREMENT BENEFITS SCHEMES, MANAGERS, CUSTODIANS AND ADMINISTRATORS - 25B. Requirements for registration of administratorsCommencement

Applicants for registration as scheme administrators must meet listed eligibility and capacity requirements (paragraphs (a)–(f), (ee), (eb)); registered administrators must comply with paragraph (eb) within six months of its commencement.

Section 25B. Requirements for registration of administrators Section 25B(1)(a) is a limited liability company incorporated under the Companies Act ( Cap. 486 ), whose liability is limited by shares and whose main objective is to render administrative services to schemes; Section 25B(1)(b) has such minimum paid up share capital as may, from time to time, be prescribed; Section 25B(1)(c) is capable of meeting the obligations to members and sponsors specified in the scheme rules ; Section 25B(1)(d) has the professional and technical capacity and adequate operational systems to perform it’s functions; Section 25B(1)(e) has never been an administrator of any scheme fund which has been either deregistered, wound up or placed under an interim administrator due to any fault, either fully or partially, of the administrator ; Section 25B(1)(ee) has in its Board of Directors and top management such number of persons as may be prescribed who are academically and professionally qualified in matters relating to administration of schemes, insurance, law, accounting, actuarial science, economics, banking, finance or investment of scheme funds; Section 25B(1)(eb) has at least thirty three percent of its paid up share capital owned by Kenyan citizens unless the applicant is a bank or an insurance company; and Section 25B(1)(f) meets such additional requirements as may, from time to time, be prescribed. Section 25B(2) A person registered as a scheme administrator under this Act shall comply with the provisions of paragraph (eb) of subsection (1) within six months from the date of commencement of that paragraph.
Section 25BVerify source
§ 25CREGISTRATION OF RETIREMENT BENEFITS SCHEMES, MANAGERS, CUSTODIANS AND ADMINISTRATORS - 25C. Requirements for the registration of corporate trusteesProvision

The Authority may prescribe the minimum paid-up share capital for corporate trustees.

Section 25C. Requirements for the registration of corporate trustees Section has such minimum paid up share capital as may be prescribed by the Authority;
Section 25CVerify source
§ 26REGISTRATION OF RETIREMENT BENEFITS SCHEMES, MANAGERS, CUSTODIANS AND ADMINISTRATORS - 26. Requirements with regard to trusteesProvision

Every scheme (other than one established by written law) must be established under an irrevocable trust, and the appointment of any person as a trustee is subject to approval by the Authority.

Section 26. Requirements with regard to trustees Section 26(1) Every scheme , other than a scheme established by a written law shall be established under an irrevocable trust. Section 26(2)(a) has been sentenced to imprisonment by a court of competent jurisdiction for a period of six months of more; Section 26(2)(b) is adjudged bankrupt; Section 26(2)(c) was previously involved in the management or administration of a scheme which was deregistered for any failure on the part of the management or the administration thereof; Section 26(2)(d) is disqualified under any other written law, or his holding office as such is deemed by the Authority as being, in any way, detrimental to the scheme ; or Section 26(2)(e) does not comply with the guidelines or practice notes issued by the Authority. Section 26(3) Not withstanding the provisions of subsection (2) , the appointment of any person as a trustee shall be subject to approval by the Authority.
Section 26Verify source
§ 27REGISTRATION OF RETIREMENT BENEFITS SCHEMES, MANAGERS, CUSTODIANS AND ADMINISTRATORS - 27. Refusal of registrationProvision

If the Authority refuses to register a scheme, manager, corporate trustee or custodian, it must forthwith notify the applicant in the prescribed form specifying the reasons for refusal.

Section 27. Refusal of registration Section 27(1)(a) the information contained in the application for registration is false or untrue in any material particular; or Section 27(1)(b) the applicant does not meet the requirements for registration. Section 27(2) Where the Authority refuses to register any scheme , manager , corporate trustee ("a limited liability company incorporated under(), which is, for the time being, empowered under any written law, its charter, memorandum of association, deed of settlement or other instrument constituting it or defining its powers to mainly undertake trusts, and includes a trust corporation;") , or custodian , it shall forthwith notify the applicant in the prescribed form, specifying the reasons for such refusal.
Section 27Verify source
§ 28REGISTRATION OF RETIREMENT BENEFITS SCHEMES, MANAGERS, CUSTODIANS AND ADMINISTRATORS - 28. DeregistrationProvision

The Authority may deregister schemes, managers, trustees, custodians or administrators on specified grounds; before deregistration it must give 28 days' notice to affected parties and consider written representations; the CEO may, with Board approval, take over distribution when assets are insufficient.

Section 28. Deregistration Section 28(1)(a) it discovers after registration that a statement was made in connection with the application therefore which the applicant knew to be false or untrue in any material particular; or Section 28(1)(b) the scheme is wound up or is otherwise dissolved; or Section 28(1)(c) the scheme does not conform to the provisions of this Act or any regulations made or directions issued under this Act or any condition of the certificate of registration. Section 28(2) The Authority shall, before deregistering a scheme , give the trustees, sponsors and members of the scheme at least twenty-eight days notice of its intention and shall consider any representations made to it in writing by the trustees, sponsors or members within that period before deregistering the scheme . Section 28(3)(a) it discovers after registration that the manager , corporate trustee ("a limited liability company incorporated under(), which is, for the time being, empowered under any written law, its charter, memorandum of association, deed of settlement or other instrument constituting it or defining its powers to mainly undertake trusts, and includes a trust corporation;") , custodian or administrator made a statement in or in connection with the application therefor which was false or untrue in any material particular; or Section 28(3)(b) any event occurs which renders the manager , corporate trustee ("a limited liability company incorporated under(), which is, for the time being, empowered under any written law, its charter, memorandum of association, deed of settlement or other instrument constituting it or defining its powers to mainly undertake trusts, and includes a trust corporation;") , custodian or administrator ineligible to manage or provide custodial services to a scheme fund , as the case may be; Section 28(3)(c) the manager ’s, corporate trustee ("a limited liability company incorporated under(), which is, for the time being, empowered under any written law, its charter, memorandum of association, deed of settlement or other instrument constituting it or defining its powers to mainly undertake trusts, and includes a trust corporation;") 's, custodian ’s or administrator ’s business is wound up or is otherwise dissolved; Section 28(3)(d) the manager , corporate trustee ("a limited liability company incorporated under(), which is, for the time being, empowered under any written law, its charter, memorandum of association, deed of settlement or other instrument constituting it or defining its powers to mainly undertake trusts, and includes a trust corporation;") , custodian or administrator is in breach of any condition attached to the certificate of registration; or Section 28(3)(e) the manager , corporate trustee ("a limited liability company incorporated under(), which is, for the time being, empowered under any written law, its charter, memorandum of association, deed of settlement or other instrument constituting it or defining its powers to mainly undertake trusts, and includes a trust corporation;") , custodian or administrator does not comply with any of provisions of this Act, or with any regulations made or directions issued thereunder. Section 28(4) The Authority shall, before deregistering a manager , corporate trustee ("a limited liability company incorporated under(), which is, for the time being, empowered under any written law, its charter, memorandum of association, deed of settlement or other instrument constituting it or defining its powers to mainly undertake trusts, and includes a trust corporation;") or custodian , give the manager , corporate trustee ("a limited liability company incorporated under(), which is, for the time being, empowered under any written law, its charter, memorandum of association, deed of settlement or other instrument constituting it or defining its powers to mainly undertake trusts, and includes a trust corporation;") or custodian and the sponsors or trustees of the scheme at least twenty-eight days notice of its intention, and shall consider any representations made to it in writing by the manager , corporate trustee ("a limited liability company incorporated under(), which is, for the time being, empowered under any written law, its charter, memorandum of association, deed of settlement or other instrument constituting it or defining its powers to mainly undertake trusts, and includes a trust corporation;") or custodian within that period before deregistering the manager , corporate trustee ("a limited liability company incorporated under(), which is, for the time being, empowered under any written law, its charter, memorandum of association, deed of settlement or other instrument constituting it or defining its powers to mainly undertake trusts, and includes a trust corporation;") or custodian . Section 28(5) Every notice under subsections (2) and (4) shall be in the prescribed form and shall specify the reasons for the intended deregistration. Section 28(6) The deregistration of a scheme shall not in any way prejudice the claims of members under the scheme . Section 28(7) Where the assets of a deregistered scheme are insufficient to fully discharge its obligations to its members, the Chief Executive Officer may, subject to the approval of the Board , take over the distribution or transfer of the assets and the supervision of the scheme in order to protect the interests of members.
Section 28Verify source
§ 29REGISTRATION OF RETIREMENT BENEFITS SCHEMES, MANAGERS, CUSTODIANS AND ADMINISTRATORS - 29. Duration and renewal of certificatesProvision

Section 29 sets rules on the duration of registration certificates and requires managers, corporate trustees, custodians and administrators to pay an annual fee, submit audited financial statements and specified information by 30th September each year, and notify the Authority of changes in shareholding, directorship or top management within thirty days.

Section 29. Duration and renewal of certificates Section 29(1) Subject to this Act, a certificate of registration issued in respect of a scheme shall be valid from the date of issue and shall remain in force until the scheme is deregistered or wound up in accordance with the scheme rules or the provisions of the written law under which the scheme is established. Section 29(2) A certificate of registration issued to a manager , corporate trustee ("a limited liability company incorporated under(), which is, for the time being, empowered under any written law, its charter, memorandum of association, deed of settlement or other instrument constituting it or defining its powers to mainly undertake trusts, and includes a trust corporation;") , custodian or administrator shall be valid from the date of issue and shall, unless suspended or revoked, remain valid. Section 29(3) A manager , corporate trustee ("a limited liability company incorporated under(), which is, for the time being, empowered under any written law, its charter, memorandum of association, deed of settlement or other instrument constituting it or defining its powers to mainly undertake trusts, and includes a trust corporation;") , custodian or administrator shall pay such annual fee as may be prescribed by the Authority. Section 29(4) A manager , corporate trustee ("a limited liability company incorporated under(), which is, for the time being, empowered under any written law, its charter, memorandum of association, deed of settlement or other instrument constituting it or defining its powers to mainly undertake trusts, and includes a trust corporation;") , custodian or administrator shall submit current audited financial statements, a list of the directors and top management, any changes in clientele and such further information as the Authority may request by the 30th September of every year. Section 29(5) A manager , corporate trustee ("a limited liability company incorporated under(), which is, for the time being, empowered under any written law, its charter, memorandum of association, deed of settlement or other instrument constituting it or defining its powers to mainly undertake trusts, and includes a trust corporation;") , custodian or administrator shall communicate to the Authority any changes in shareholding, directorship or top management within thirty days after the change has occurred.
Section 29Verify source
§ 30REGISTRATION OF RETIREMENT BENEFITS SCHEMES, MANAGERS, CUSTODIANS AND ADMINISTRATORS - 30. RegisterProvision

The Chief Executive Officer must keep a register of all registered schemes, managers, corporate trustees, custodians and administrators and enter particulars specified by the Board; the Board may determine the register's form and when and to what extent members of the public may inspect or obtain copies on payment of the prescribed fee.

Section 30. Register Section 30(1) The Chief Executive Officer shall keep a register in such form as the Board may determine, of all schemes, managers, corporate trustees, custodians and administrators registered under this Act and shall enter therein, in respect of the schemes, managers, corporate trustees and custodians, such particulars as the Board may specify. Section 30(2) The Board may determine the time or times during which, and the extent to which any person may, on payment of the prescribed fee, inspect the register kept under this section or obtain copies thereof. ( Act No. 7 of 1998 , s. 10, Act No. 2 of 2006 , s. 11, Act No. 8 of 2021 , s. 67)
Section 30Verify source
§ 31REGISTRATION OF RETIREMENT BENEFITS SCHEMES, MANAGERS, CUSTODIANS AND ADMINISTRATORS - 31. Use of register in evidenceProvision

Register entries are prima facie evidence of the facts recorded; a document certified by the Chief Executive Officer as a true copy or extract from the register is admissible in court as prima facie evidence of the register's contents.

Section 31. Use of register in evidence Section 31(1) For the purposes of ascertaining the facts concerning the registration of a scheme , manager , corporate trustee ("a limited liability company incorporated under(), which is, for the time being, empowered under any written law, its charter, memorandum of association, deed of settlement or other instrument constituting it or defining its powers to mainly undertake trusts, and includes a trust corporation;") , custodian or administrator , entries made in the register shall be prima facie evidence as to the facts specified in the register. Section 31(2) A document certified by the Chief Executive Officer as a true copy or extract from the register shall be admissible in any court as prima facie evidence of the contents of the register.
Section 31Verify source

Part IV

REGULATION AND SUPERVISION OF RETIREMENT BENEFITS SCHEMES

§ 32REGULATION AND SUPERVISION OF RETIREMENT BENEFITS SCHEMES - 32. Scheme fundsProvision

Scheme funds must be maintained separately by the trustees or the manager, and the Cabinet Secretary may make regulations (in consultation with the Authority) about scheme funds.

Section 32. Scheme funds Section 32(1) There shall be, in respect of every scheme other than a scheme fully funded out of the Consolidated Fund , a scheme fund into which all contributions, investment earnings, income and all other moneys payable under the scheme rules or the provisions of this Act shall be paid. Section 32(2) The scheme fund and all monies therein shall at all times be maintained separately from any other funds under the control of the trustees or the manager thereof. Section 32(3) Subject to the provisions of this Act, the Cabinet Secretary may, in consultation with the Authority, make regulations with regard to the funding, vesting, custody, management, application and the transfer of scheme funds and the accounting for such funds.
Section 32Verify source
§ 33REGULATION AND SUPERVISION OF RETIREMENT BENEFITS SCHEMES - 33. Statutory contributionsProvision

An employer may pay statutory contributions into a prescribed scheme fund with the approval of employees; if the payment transfers funds from another scheme fund the employer must give written notice to the Authority and trustees at least sixty days before starting.

Section 33. Statutory contributions Section 33(1) Notwithstanding the provisions of any written law for the time being in force, an employer may, with the approval of his employees, pay any statutory contributions in respect of such employees into any scheme fund prescribed for that purpose: Provided that where such payment involves a transfer of funds from another scheme fund , the employer shall, at least sixty days before commencing such payment, give written notice thereof to the Authority and to the trustees of the scheme fund from which such funds shall be transferred. Section 33(2) In this section, the expression “statutory contributions” means contributions required under the provisions of a written law to be paid into a retirement benefits scheme .
Section 33Verify source
§ 34REGULATION AND SUPERVISION OF RETIREMENT BENEFITS SCHEMES - 34. Annual report and accountsOffence

Trustees must keep proper books and records, have annual accounts audited by an auditor approved by the Board (who must not be a member, trustee or sponsor), submit audited accounts to the Chief Executive Officer within three months after the end of each financial year, and specified penalties and daily fines apply for failure to submit; provisions also set penalties for fund managers and administrators for late returns and allow the Authority to extend the submission time by up to three months.

Section 34. Annual report and accounts Section 34(1) The trustees of every scheme shall cause to be kept all proper books and records of account of the income, expenditure and assets of the scheme fund . Section 34(2)(a) statement of assets and liabilities; Section 34(2)(b) a statement of income and expenditure; Section 34(2)(c) a statement of the assets and liabilities of the scheme as on the last day of that year; and Section 34(2)(d) such other documents as may be prescribed. Section 34(3) The accounts of the scheme fund in respect of each financial year shall be audited by an auditor appointed by the trustees with the approval of the Board : Provided that the appointed auditor shall not be a member , trustee or sponsor of the scheme . Section 34(4) Within three months after the end of each financial year , the trustees shall submit a copy of the audited accounts of the scheme to the Chief Executive Officer . Section 34(4A) A trustee who fails to submit a copy of the audited accounts, in respect of a scheme , to the Chief Executive Officer pursuant to subsection (4) commits an offence and shall be liable, on conviction, to a fine not exceeding five hundred thousand shillings, or to imprisonment for a term not exceeding two years or to both. Section 34(4B) Where an offence under subsection (4A) is continuing offence, the person convicted shall, in addition to the penalty prescribed under the subsection, be liable to further fine of five thousand shillings for each day or part thereof during which the offence continues. Section 34(4C) A trustee who fails to submit a copy of audited accounts of the scheme to the Chief Executive Officer by the due date shall pay a penalty of one hundred thousand shillings and where the returns remain un-submitted, the trustee , in addition to the prescribed penalty, shall pay a further fine of one thousand shillings for each day or part thereof during which the returns remain un-submitted: Provided that a person who pays a penalty under this subsection may also be liable to prosecution in court under subsection (4A) . Section 34(4D) A fund manager who fails to submit an investment return of a scheme to the Chief Executive Officer by the due date shall pay a penalty of ten thousand shillings and where the returns remain unsubmitted, the fund manager , in addition to the prescribed penalty shall pay a further fine of one thousand shillings for every day or part thereof during which the returns remain unsubmitted. Section 34(4E) An administrator who fails to submit contribution returns of a scheme to the Chief Executive Officer by the due date shall pay a penalty of ten thousand shillings and where the returns remain unsubmitted, the administrator , in addition to the prescribed penalty, shall pay a further fine of one thousand shillings for every day or part thereof during which the returns remain unsubmitted. Section 34(4F)(a) the Authority may, on application by the Trustees, extend the time specified in subsection (4) for a period not exceeding three months, if the extension appears justified; and Section 34(4F)(b) where an extension of time is granted, the penalty prescribed for late submission shall not apply for the extended period. Section 34(5) Every scheme shall publish its annual accounts in such manner as the Cabinet Secretary may, in consultation with the Authority, prescribe.
Section 34Verify source
§ 35REGULATION AND SUPERVISION OF RETIREMENT BENEFITS SCHEMES - 35. Actuarial evaluationsOffence

The Board may require trustees to have schemes evaluated by an actuary approved by the Board and to present actuarial reports to the Chief Executive Officer at intervals the Board specifies; trustees who fail to submit the report by the regulations' due date must pay KSh 100,000 and KSh 1,000 for each day it remains unsubmitted.

Section 35. Actuarial evaluations Section 35(1) The Board may require the trustees of such schemes or categories of schemes as it may specify, to cause the schemes to be evaluated by an actuary appointed by the trustees with the approval of the Board and to present the actuarial report to the Chief Executive Officer at such regular intervals as the Board may specify. Section 35(2) A trustee who fails to submit a copy of the actuarial report to the Chief Executive Officer by the due date specified in the regulations shall pay a penalty of one hundred thousand shillings. Section 35(3) Where the report remains unsubmitted, the trustee , in addition to the penalty specified under subsection (2) , shall pay a further penalty of one thousand shillings for each day or part thereof during which the report remains unsubmitted.
Section 35Verify source
§ 36REGULATION AND SUPERVISION OF RETIREMENT BENEFITS SCHEMES - 36. Protection against attachmentProvision

Contributions or funds of a scheme member or their employer do not form part of the member's or employer's assets in the event of bankruptcy.

Section 36. Protection against attachment Section Notwithstanding anything to the contrary contained in any other written law, where a judgement or order against a member of a scheme is made, no execution or attachment or process of any nature shall be issued in respect of the contributions or funds of the member or his employer except in accordance with the scheme rules and such contributions shall not form part of the assets of the member or of his employer in the event of bankruptcy.
Section 36Verify source
§ 36AREGULATION AND SUPERVISION OF RETIREMENT BENEFITS SCHEMES - 36A. Treatment of death benefitsProvision

When a scheme member dies, trustees must pay the scheme benefit in accordance with the scheme rules; the benefit does not form part of the member's estate for administration.

Section 36A. Treatment of death benefits Section Upon the death of a member of a scheme , the benefit payable from the scheme shall not form part of the estate of the member for the purpose of administration and shall be paid out by the trustees in accordance with the scheme rules . ( Act No. 9 of 2007 , s. 72)
Section 36AVerify source
§ 37REGULATION AND SUPERVISION OF RETIREMENT BENEFITS SCHEMES - 37. Investment ofschemefundsProvision

Schemes must adopt a prudent investment policy; small schemes (≤100,000,000 Kenya shillings) may invest up to 100% in Government securities; the Cabinet Secretary may make implementing regulations; schemes must submit statements of investments to the Chief Executive Officer; approved issuers must remove funds from guaranteed fund asset classes within 12 months after termination.

Section 37. Investment ofschemefunds Section 37(1) Every scheme shall have a prudent investment policy on the investment of the funds of the scheme so as to maintain the capital funds of the scheme and generally to secure market rates of return on such investment: Provided that a scheme with a fund value of one hundred million Kenya shillings or less may invest up to one hundred per centum of its scheme funds in Government securities. Section 37(2) Notwithstanding the provisions of any other written law, the investment policy of a scheme shall be implemented subject to any regulations the Cabinet Secretary may, in consultation with the Authority, make for that purpose. Section 37(3) There shall be submitted to the Chief Executive Officer , in respect of every scheme , a statement of all investments of the scheme fund , in such form, manner and at such intervals as may be prescribed. Section 37(4) Where scheme funds are invested in a guaranteed fund asset class, the approved issuer shall, upon termination of the relevant agreement, transfer the funds out of the asset class within twelve months, or such other shorter period as may be specified in the instrument of appointment.
Section 37Verify source
§ 38REGULATION AND SUPERVISION OF RETIREMENT BENEFITS SCHEMES - 38. Restriction on use ofschemefundsProvision

Limits certain uses of scheme funds; allows members to assign some benefits to secure a mortgage or buy a house; exempts funds set up for Sharia-compliant investing from guidelines; grants the Authority power to disqualify and later lift disqualification after at least five years upon application and fee.

Section 38. Restriction on use ofschemefunds Section 38(1)(a) used to make direct or indirect loans to any person; Section 38(1)(b) invested contrary to any guidelines prescribed for that purpose; or Section 38(1)(c) invested with a bank, non-banking financial institution, insurance company, building society or other similar institution with a view to securing loans, at a preferential rate of interest or for any other consideration to the sponsor , trustees, members or the manager of such scheme , Section 38(1A) Notwithstanding the provisions of subsection (1) , a prescribed proportion of the benefits accruing to a member in a scheme may be assigned and used by the member to secure a mortgage loan or to purchase a residential house from such institutions and on such terms as may be prescribed in regulations made by the Cabinet Secretary. Section 38(1A) Subject to subsection (1)(b) , where a fund is set up exclusively for the purpose of investing sharia complaint funds, the fund shall be exempted from the guidelines. Section 38(2) The Authority may disqualify a person who acts in contravention of the provisions of this section from participating in any way in the management custody or administration of any scheme fund : Provided that the Authority may, on the expiry of at least five years from the date of disqualification, upon application by such person and payment of the prescribed fee, lift the disqualification subject to such conditions as it may deem appropriate.
Section 38Verify source
§ 39REGULATION AND SUPERVISION OF RETIREMENT BENEFITS SCHEMES - 39. Unsafe and unsound practicesOffence

The Chief Executive Officer may direct trustees, managers, custodians or administrators of a scheme in writing to stop unsafe or unsound practices; acting contrary to such a direction is an offence punishable by a fine up to five hundred thousand shillings or imprisonment up to two years, or both.

Section 39. Unsafe and unsound practices Section 39(1) Where, in the opinion of the Chief Executive Officer , a trustee , manager , custodian or administrator of a scheme is pursuing an act or course of conduct which the Chief Executive Officer considers to be an unsafe or unsound practice, or in any way detrimental to the scheme , the Chief Executive Officer shall, by notice in writing, direct such trustee , manager , custodian or administrator to refrain from pursuing such act or course of conduct. Section 39(2) A trustee , manager or custodian who acts in contravention of a direction under this section commits an offence and shall be liable, on conviction, to a fine not exceeding five hundred thousand shillings, or to imprisonment for a term not exceeding two years, or to both.
Section 39Verify source
§ 40REGULATION AND SUPERVISION OF RETIREMENT BENEFITS SCHEMES - 40. General obligations of trustees and managersProvision

Trustees and managers must ensure that the scheme fund is at all times managed in accordance with this Act, any regulations made thereunder, the scheme rules and any directions given by the Chief Executive Officer.

Section 40. General obligations of trustees and managers Section ensure that the scheme fund is at all times managed in accordance with this Act, any regulations made thereunder, the scheme rules and any directions given by the Chief Executive Officer ;
Section 40Verify source

Part V

INSPECTION AND APPOINTMENT OF INTERIM ADMINISTRATION

§ 41INSPECTION AND APPOINTMENT OF INTERIM ADMINISTRATION - 41. InspectionProvision

The Chief Executive Officer may at any time and shall, if directed by the Board, cause an inspection by an inspector he authorises; managers, trustees, custodians or administrators and their officers must provide documents within seven days (or longer if the inspector directs); documents must not be removed during inspection; the inspector may copy documents.

Section 41. Inspection Section 41(1) The Chief Executive Officer may, at any time and from time to time, and shall, if so directed by the Board , cause an inspection to be made by an inspector authorized by him in writing, of any scheme or of the business of any manager , corporate trustee ("a limited liability company incorporated under(), which is, for the time being, empowered under any written law, its charter, memorandum of association, deed of settlement or other instrument constituting it or defining its powers to mainly undertake trusts, and includes a trust corporation;") , custodian or administrator registered under this Act, and of it’s books, accounts and records. Section 41(2) When an inspection is made under subsection (1) , the manager, corporate trustee, custodian or administrator of the scheme concerned and every officer, trustee or employee thereof shall make available to the inspector all the books, accounts records and other documents of the scheme and such correspondence, statements and information relating to the scheme as the inspector may require, within seven days or such longer period as the inspector may direct in writing. Section 41(3)(a) the books, accounts and other documents shall not, in the course of inspection, be removed from the premises at which they are produced; Section 41(3)(b) the inspector may make copies of any books, accounts and other documents required for the purposes of his report; and Section 41(3)(c) all information obtained in the course of the inspection shall be treated as confidential and used solely for the purposes of this Act.
Section 41Verify source
§ 42INSPECTION AND APPOINTMENT OF INTERIM ADMINISTRATION - 42. Powers of the inspectorOffence

Section 42 creates offences for obstructing inspectors, giving false information or failing to comply with inspector requirements, and prescribes fines, imprisonment for individuals, daily continuing-offence fines, and a power for the Authority to seek winding up of a convicted body corporate.

Section 42. Powers of the inspector Section 42(1)(a) give to the inspector all reasonable assistance in connection with the inspection; Section 42(1)(b) appear before the inspector for examination concerning matters relevant to the inspection, or Section 42(1)(c) produce any books or documents relating to the affairs of the scheme being inspected. Section 42(2)(a) refuses or fails to comply with a requirement of an inspector which is applicable to him, to the extent to which he is able to comply with it; Section 42(2)(b) obstructs or hinders an inspector in the exercise of his powers under this Act; Section 42(2)(c) furnishes information or makes a false statement which he knows to be false or misleading in any material particular; or Section 42(2)(d) when appearing before an inspector for examination, makes a statement which he knows to be false or misleading in any material particular, Section 42(3) A person convicted of an offence under subsection (2) shall be liable to a fine not exceeding five hundred thousand shillings, or, in the case of a natural person, to imprisonment for a term not exceeding three years, or to both. Section 42(4) Where an offence under subsection (2) is a continuing offence, the person convicted shall, in addition to the penalty prescribed in subsection (3) , be liable to a further fine of one thousand shillings for every day during which the offence continues. Section 42(5) Where the person convicted under this section is a body corporate, the Authority may, notwithstanding any other penalty imposed under this Act, apply to court for the winding up of such body corporate.
Section 42Verify source
§ 43INSPECTION AND APPOINTMENT OF INTERIM ADMINISTRATION - 43. Inspection reportProvision

An inspector appointed under this Part must submit his report to the Chief Executive Officer; the report must draw attention to breaches of the Act or regulations, mismanagement or lack of management skills, and any other matters warranting remedial action or further investigation.

Section 43. Inspection report Section An inspector appointed under this Part shall submit his report to the Chief Executive Officer and the report shall draw attention to any breach of the requirements of this Act and any regulations made thereunder, any mismanagement or lack of management skills in the manager and any other matter revealed or discovered in the course of the inspection warranting, in the opinion of the inspector, remedial action or further investigation.
Section 43Verify source
§ 44INSPECTION AND APPOINTMENT OF INTERIM ADMINISTRATION - 44. Directions tomanagerProvision

The Chief Executive Officer may, by notice in the prescribed form, require trustees, managers, custodians or administrators of an inspected scheme to comply with directions the Authority considers necessary, within any date or period specified.

Section 44. Directions tomanager Section The Chief Executive Officer may, by notice in the prescribed form, require the trustees, manager , custodian or administrator of a scheme inspected under this Part to comply, by such date or within such period as may be specified therein, with such directions as the Authority considers necessary in connection with any matter arising out of the report made under section 43 . ( Act No. 7 of 1998 , s. 19, Act No. 2 of 2006 , s. 17)
Section 44Verify source
§ 44AINSPECTION AND APPOINTMENT OF INTERIM ADMINISTRATION - 44A. Sharing informationProvision

The Authority may share information with other regulatory authorities.

Section 44A. Sharing information Section The Authority may share information with other regulatory authorities. ( Act No. 10 of 2010 , s. 76)
Section 44AVerify source
§ 45INSPECTION AND APPOINTMENT OF INTERIM ADMINISTRATION - 45. Appointment of interimadministratorProvision

The Chief Executive Officer may appoint an interim administrator with powers to manage a scheme where trustees fail in reporting, provide false information, or other circumstances warranting intervention; the interim administrator must manage the scheme diligently and perform specified tasks; appointment is for up to twelve months and may be extended by the High Court.

Section 45. Appointment of interimadministrator Section 45(1)(a) if the trustees of a scheme fail to submit to the Chief Executive Officer the annual accounts required under section 34 for over six months after the end of the financial year to which they relate; Section 45(1)(b) if the trustees are found to have submitted or provided any accounts, returns, statements, books, records, correspondence, documents or other information relating to the scheme fund which are false or misleading; or Section 45(1)(c) if the Chief Executive Officer , whether on inspection or otherwise, becomes aware of any fact or circumstance which, in his opinion, warrants the exercise of the relevant power in the interests of the sponsors and members of the scheme or in the public interest. Section 45(2)(a) appoint any person (in this Act referred to as “an interim administrator ”) to assume the management, control and conduct of the affairs and business of the trustees, the manager , the custodian or the administrator , as the case may be, to exercise all the powers of the trustees, the manager , the custodian or the administrator to the exclusion of such trustees, manager , custodian or administrator ; Section 45(2)(b) remove any officer or employee of the trustees, the manager , the custodian or the administrator who, in the opinion of the Chief Executive Officer , has caused or contributed to any contravention of the provisions of this Act or any regulations made thereunder or to any deterioration in the financial stability of the scheme or has been guilty of conduct detrimental to the interests of the members or sponsors of the scheme ; or Section 45(2)(c) by notice in the Gazette , revoke or cancel any existing power of attorney, mandate, appointment or other authority by the trustees, the manager , the custodian or the administrator in favour of any officer, employee or any other person. Section 45(3) The appointment of an interim administrator shall be for such period, not exceeding twelve months, as the Chief Executive Officer may specify in the instrument of appointment but may be extended by the High Court, upon application by the Chief Executive Officer , if such extension appears justified. Section 45(4) An interim administrator shall, upon assuming the management, control and conduct of the affairs and business of the trustees, the manager , the custodian or the administrator , discharge his duties with diligence and in accordance with sound actuarial and financial principles and in particular, with due regard to the interests of the trustees, the manager , the custodian , the administrator , the members and sponsors of the scheme . Section 45(5)(a) tracing, preserving and securing all the assets and property of the scheme ; Section 45(5)(b) recovering all debts and other sums of money due to and owing to the scheme ; Section 45(5)(c) evaluating the solvency and the liquidity of the scheme ; Section 45(5)(d) assessing the scheme ’s, the manager ’s, the custodian ’s and the administrator ’s compliance with the provisions of this Act and any regulations made thereunder; Section 45(5)(e) determining the adequacy of the capital and reserves and the management of the scheme and recommending to the Chief Executive Officer any restructuring or re-organization which he considers necessary and which, subject to the provisions of any other law, may be implemented by him on behalf of the trustees, the manager , the custodian or the administrator ; and Section 45(5)(f) obtain from any former trustee , manager or administrator of the scheme or any officer, employee or agent thereof, any documents, records, accounts, statements, correspondence or information relating to the scheme . Section 45(6)(a) the scheme is capable of being revived; or Section 45(6)(b) the scheme should be deregistered. Section 45(7) The Chief Executive Officer shall, after taking into account the report of the interim administrator , make appropriate recommendations to the Board which shall take a decision on the matter. Section 45(8) Neither the Chief Executive Officer nor any officer, employee or agent of the Authority nor the interim administrator nor any other person appointed, designated or approved by the Chief Executive Officer under the provisions of this Part shall be liable in respect of any act or omission done in good faith in the execution of the duties undertaken by him. Section 45(9) The costs of an interim administrator of a scheme shall be a charge on the Fund .
Section 45Verify source
§ 45AINSPECTION AND APPOINTMENT OF INTERIM ADMINISTRATION - 45A. Treatment of unclaimed benefitsProvision

If, within two years after completion of winding up a scheme, the liquidator cannot trace a member, that member's accrued benefits become unclaimed assets under the Unclaimed Financial Assets Act.

Section 45A. Treatment of unclaimed benefits Section 45A(1) If within a period of two years from the completion of winding up proceedings in respect of a scheme under the Act, the liquidator is unable to trace any member of the scheme , the accrued benefits due to such member shall become unclaimed assets within the meaning of section 13(1) of the Unclaimed Financial Assets Act ( Cap. 494 ) at the end of that period. Section 45A(2)(a) a scheme member entitled to such accrued benefits has not lodged any claim and the trustee is unable to locate that member after taking the specified steps; Section 45A(2)(b) a scheme member has lodged a claim with the trustee but the trustee is subsequently unable to locate that member after taking the specified steps; or Section 45A(2)(c) increased or decreased the principal; Section 45A(2)(c)(i) increased or decreased the principal; Section 45A(2)(c)(ii) accepted any payment in respect of the accrued benefits; Section 45A(2)(c)(iii) communicated with the scheme concerning the accrued benefits; or Section 45A(2)(c)(iv) indicated any other interest in the accrued benefits as evidenced by a record prepared by the trustees.
Section 45AVerify source

Part VI

APPEALS

§ 46APPEALS - 46. Appeals to theChief Executive OfficerProvision

Members of a scheme who are dissatisfied with a decision may in writing request the Chief Executive Officer to review that decision.

Section 46. Appeals to theChief Executive Officer Section 46(1) Any member of a scheme who is dissatisfied with a decision of the manager , administrator , custodian or trustees of the scheme may request, in writing, that such decision be reviewed by the Chief Executive Officer with a view to ensuring that such decision is made in accordance with the provisions of the relevant scheme rules or the Act under which the scheme is established. Section 46(2) A copy of every request under this section shall be served on the manager , administrator , custodian or trustees of the scheme .
Section 46Verify source
§ 47APPEALS - 47. Establishment of AppealsTribunalProvision

The Cabinet Secretary must, by order published in the Gazette, establish an Appeals Tribunal for hearing appeals under this Act; the Tribunal will have a chairperson and four members appointed by the Cabinet Secretary, who hold office for three years; the chairperson must be an advocate of the High Court of Kenya with at least seven years standing; the quorum is the chairperson and any two members; matters are decided by majority vote subject to the quorum rule.

Section 47. Establishment of AppealsTribunal Section 47(1) The Cabinet Secretary shall, by order published in the Gazette establish an Appeals Tribunal for the purpose of hearing appeals under this Act. Section 47(2) The Tribunal shall consist of a chairperson and four other members who shall be appointed by the Cabinet Secretary and who shall hold office for a period of three years upon such terms and conditions as may be prescribed. Section 47(3) The chairperson of the Tribunal shall be an advocate of the High Court of Kenya of not less than seven years standing. Section 47(3A) The quorum of the Tribunal for the purposes of a hearing under this section shall be the chairperson and any two members. Section 47(4) Subject to subsection (3A) , all matters before the Tribunal shall, in the event of a difference of opinion, be decided by the votes of the majority of the members thereof.
Section 47Verify source
§ 48APPEALS - 48. Appeals to theTribunalProvision

A person aggrieved by a decision of the Authority or its Chief Executive Officer may appeal to the Tribunal within thirty days; where a dispute arises between a person and the Authority over the Authority's powers, either party may appeal to the Tribunal in a prescribed manner.

Section 48. Appeals to theTribunal Section 48(1) Any person aggrieved by a decision of the Authority or of the Chief Executive Officer under the provisions of this Act or any regulations made thereunder may appeal to the Tribunal within thirty days of the receipt of the decision. Section 48(2) Where any dispute arises between any person and the Authority as to the exercise of the powers conferred upon the Authority by this Act, either party may appeal to the Tribunal in such manner as may be prescribed.
Section 48Verify source
§ 49APPEALS - 49. Powers of AppealsTribunalProvision

The Appeals Tribunal has the powers of a subordinate first-class court to summon witnesses, take evidence and call for documents; it may receive affidavit evidence and administer interrogatories; it may consider evidence otherwise inadmissible; it has power to award costs; and interested parties may be represented before it.

Section 49. Powers of AppealsTribunal Section 49(1) On the hearing of an appeal, the Tribunal shall have all the powers of a subordinate court of the first class to summon witnesses, to take evidence upon oath or affirmation and to call for the production of books and other documents. Section 49(2) Where the Tribunal considers it desirable for the purpose of avoiding expense or delay or any other special reason so to do, it may receive evidence by affidavit and administer interrogatories and require the person to whom the interrogatories are administered to make a full and true reply to the interrogatories within the time specified by the Tribunal . Section 49(3) In its determination of any matter, the Tribunal may take into consideration any evidence which it considers relevant to the subject of an appeal before it, notwithstanding that the evidence would not otherwise be admissible under the law relating to admissibility of evidence. Section 49(4) The Tribunal shall have power to award the costs of any proceedings before it and to direct that costs shall be paid in accordance with any scale prescribed for suits in the High Court or to award a specific sum as costs. Section 49(5) All summons, notices or other documents issued under the hand of the chairperson of the Tribunal shall be deemed to be issued by the Tribunal . Section 49(6) Any interested party may be represented before the Tribunal by an advocate or by any other person whom the Tribunal may, in its discretion, admit to be heard on behalf of the party.
Section 49Verify source
§ 50APPEALS - 50. Refusal or failure to give evidenceProvision

A person "refuses or fails to attend at the time and place mentioned in the summons served on him."

Section 50. Refusal or failure to give evidence Section refuses or fails to attend at the time and place mentioned in the summons served on him;
Section 50Verify source
§ 51APPEALS - 51. CostsProvision

If the Tribunal awards costs, it must issue a certificate of the amount on application; that certificate may be filed in the High Court and, once filed, is deemed a High Court decree and may be executed.

Section 51. Costs Section 51(1) Where the Tribunal awards costs in an appeal, it shall, on application by the person to whom the costs are awarded, issue to him a certificate stating the amount of the costs. Section 51(2) Every certificate issued under subsection (1) may be filed in the High Court by the person in whose favour the costs have been awarded and upon being so filed, shall be deemed to be a decree of the High Court and may be executed as such: Provided that an order for costs against the Government shall not be enforced save in the manner provided for by the Government Proceedings Act ( Cap. 40 ).
Section 51Verify source
§ 52APPEALS - 52. Rules for appeals to the AppealsTribunalProvision

The Chief Justice may make rules about how appeals are made, fees and costs, procedure and notifying parties.

Section 52. Rules for appeals to the AppealsTribunal Section The Chief Justice may make rules governing the making of appeals and providing for the fees to be paid, the scale of costs of any such appeal, the procedure to be followed therein, and the manner of notifying the parties thereto; and until such rules are made and subject thereto, the provisions of the Civil Procedure Act ( Cap. 21 ) shall apply as if the matter appealed against were a decree of a subordinate court exercising original jurisdiction.
Section 52Verify source

Part VII

MISCELLANEOUS

§ 53MISCELLANEOUS - 53. General penaltyOffence

Contravening an express offence provision or failing to comply with a CEO direction is an offence, but a person is not guilty if they prove lack of knowledge, consent or connivance and that they attempted to prevent it.

Section 53. General penalty Section 53(1)(a) contravenes any provision of this Act which is expressly stated to be an offence but for which no other penalty is prescribed; or Section 53(1)(b) fails to comply with any direction given by the Chief Executive Officer under this Act, Section 53(2) A person does not commit an offence under subsection (1) , if he proves, to the satisfaction of the court, that the act or omission constituting the offence was done without his knowledge, consent or connivance and that he attempted to prevent the commission of the offence having regard to all the circumstances of the case.
Section 53Verify source
§ 53AMISCELLANEOUS - 53A. Proceedings for recovery of deductions from employersOffence

If an employer deducts money for a scheme but fails to remit it within 15 days, the scheme may (after giving at least seven days' notice) start recovery proceedings; the employer must pay the deducted sum within seven days of the notice; unpaid sums accrue compound interest at 3% per month; failure to comply with a notice is an offence punishable by a fine up to 500,000 shillings or, for a natural person, imprisonment up to 3 years, and continuing offences attract a further fine of 1,000 shillings per day.

Section 53A. Proceedings for recovery of deductions from employers Section 53A(1) Where an employer, having with the agreement of an employee who is a member of a scheme , made a deduction from the employee’s emoluments for remittance to the scheme , fails to remit the deduction within fifteen days of the deduction, the scheme may, after giving such employer not less than seven days’ notice, institute proceedings for the recovery of the deduction. Section 53A(2)(a) require the employer to pay the sum deducted to the scheme within seven days of the notice; and Section 53A(2)(b) inform the employer that if he fails to pay such sum before the expiration of the notice, proceedings for the summary recovery of the sum shall be filed in court without further reference to him. Section 53A(3) Any sum which is the subject of proceedings for summary recovery under this section shall attract a compound interest at the rate of three percent per month. Section 53A(4) Without prejudice to any proceedings instituted under the provisions of this section, a person who refuses or fails to comply with a notice given to him under subsection (1) commits an offence and shall be liable to a fine not exceeding five hundred thousand shillings, or in the case of a natural person, to imprisonment for a term not exceeding three years, or to both. Section 53A(5) Where an offence under subsection (4) is a continuing offence, the person convicted shall, in addition to the penalty prescribed in that subsection be liable to a further fine of one thousand shillings for every day or part thereof during which the offence continues.
Section 53AVerify source
§ 53BMISCELLANEOUS - 53B. Powers to recover unremitted contributionsOffence

Provides powers and procedures to recover unremitted contributions: employers must pay contributions, interest and a penalty within specified periods; Trustees may appoint the KRA with Authority approval; Trustees must request Authority approval in writing; the Authority must decide within 21 days; the KRA issues notices, can attach bank accounts and remit funds; recovery costs are borne by the defaulting employer.

Section 53B. Powers to recover unremitted contributions Section 53B(1)(a) pay the contributions and interest accrued to the scheme in full within the period specified in the notice and a penalty of five per cent of unremitted contributions or twenty thousand shillings whichever is higher, payable to the Authority within seven days of receipt of the notice; Section 53B(1)(a)(i) pay the contributions and interest accrued to the scheme in full within the period specified in the notice and a penalty of five per cent of unremitted contributions or twenty thousand shillings whichever is higher, payable to the Authority within seven days of receipt of the notice; Section 53B(1)(a)(ii) pay the penalty specified in paragraph (a)(i) and submit to the Authority for approval a remedial plan providing the period within which the accumulated contributions and interest thereon shall be offset; or Section 53B(1)(a)(iii) the Authority may lift the cessation order where it is satisfied that the employer is able to remit the employee emoluments as and when they fall due; Section 53B(1)(b) initiate the process of winding up the scheme and facilitate members to join individual schemes where their contributions shall be remitted. Section 53B(2) Where an employer has failed to remit contributions, the Trustees may with the approval of the Authority, appoint the Kenya Revenue Authority, as an agent, to collect unremitted contributions, interests, and penalties. Section 53B(3) Subject to subsection (2) , the Trustees shall in writing request the Authority for approval and shall demonstrate that they have taken all reasonable effort to recover unremitted contributions from a defaulting employer without any success. Section 53B(4) The Authority shall either approve or reject the request in writing within twenty-one days from the date of receipt of the request. Section 53B(5) Despite subsection (2) , where the Authority is of the opinion that the Trustees have failed or have not made reasonable effort to recover the unremitted contributions, interests and penalties, the Authority shall give notice to the Trustees instructing them to appoint the Kenya Revenue Authority as an agent to recover the unremitted contributions, interests and penalties. Section 53B(6) Upon appointment under subsection (2) or (5) , the Kenya Revenue Authority shall issue a twenty-one-day notice in writing to the defaulting employer requiring it to remit the unremitted contributions, interests, penalties and recovery costs. Section 53B(7)(a) serve such employer and the employers bank with an agency notice; Section 53B(7)(b) attach the bank accounts of the defaulting employer; and Section 53B(7)(c) remit the attached funds to the Scheme, within thirty days. Section 53B(8) The cost of the recovery of unremitted contributions shall be borne by the defaulting employer.
Section 53BVerify source
§ 54MISCELLANEOUS - 54. Offences by corporate bodies, partnerships, principals and employeesOffence

Section 54 makes bodies corporate, certain directors or officers, partners or officers of partnerships, persons, and employers or principals liable for offences under the Act; employers or principals have a defence if they prove the offence was committed against their express or standing directions.

Section 54. Offences by corporate bodies, partnerships, principals and employees Section 54(1) When an offence under the provisions of this Act is committed by a body corporate, the body corporate and every director or officer thereof who had knowledge or should have had knowledge of the commission of the offence and who did not exercise due diligence to ensure compliance with this Act commits an offence. Section 54(2) Where an offence is committed under this Act by a partnership, every partner or officer of the partnership who had knowledge or who should have had knowledge of the commission of the offence commits an offence. Section 54(3) A person shall be personally liable for an offence against this Act whether committed by him on his own account or as an agent or servant of another person. Section 54(4) An employer or principal shall be liable for an offence committed by an employee or agent against this Act unless the employer or principal proves that the offence was committed against his express or standing directions.
Section 54Verify source
§ 54AMISCELLANEOUS - 54A. Conduct of prosecutionsProvision

The Director of Public Prosecutions may appoint public prosecutors for cases arising under this Act; the Authority is deemed a public authority for purposes of the Criminal Procedure Code.

Section 54A. Conduct of prosecutions Section 54A(1) The Director of Public Prosecutions may, pursuant to the provisions of the Criminal Procedure Code ( Cap. 75 ), appoint public prosecutors for the purposes of cases arising under this Act. Section 54A(2) The Authority shall, for the purposes of the Criminal Procedure Code ( Cap. 75 ), be deemed to be a public authority.
Section 54AVerify source
§ 55MISCELLANEOUS - 55. RegulationsProvision

Section 55 allows the Cabinet Secretary, in consultation with the Authority, to make regulations to implement the Act and to prescribe matters listed in subsections (2)(a)–(g); it also allows the Authority to issue guidelines, practice notes or codes of conduct for administration of retirement benefits schemes.

Section 55. Regulations Section 55(1) The Cabinet Secretary may, in consultation with the Authority, make regulations generally for the better carrying out of the provisions of this Act. Section 55(2)(a) prescribe anything required to be prescribed under this Act; Section 55(2)(b) subject to this Act, provide for the procedure for registration and the conditions of registration; Section 55(2)(c) provide the eligibility requirements for the membership of schemes and access to retirement benefits; Section 55(2)(d) provide for any matter relating to the nature of benefits under schemes; Section 55(2)(e) prescribe the fees and other charges payable to the Authority; Section 55(2)(f) subject to the provisions of this Act and of any other written law, make provisions with regard to the winding up of schemes and the transfer of the assets of the schemes upon such winding up; Section 55(2)(g) regulate the transitional period prescribed by section 57 . Section 55(3) Without prejudice to subsection (1) , the Authority may from time to time, issue guidelines, practice notes or codes of conduct for better administration of the retirement benefits schemes.
Section 55Verify source
§ 56MISCELLANEOUS - 56. Exemption fromCap. 446Provision

The State Corporations Act (Cap. 446) does not apply to the Authority.

Section 56. Exemption fromCap. 446 Section The provisions of the State Corporations Act ( Cap. 446 ) shall not apply to the Authority.
Section 56Verify source
§ 57MISCELLANEOUS - 57. Transitional provisionsCommencement

Persons who, at the commencement of the Act, are trustees or managers of a scheme to which the Act applies must apply for registration under the Act within sixty days of commencement or within a longer period prescribed by the Cabinet Secretary in consultation with the Authority; that prescribed period must not exceed three years.

Section 57. Transitional provisions Section Any person who, at the commencement of this Act, is a trustee or manager of a scheme to which this Act applies shall, within sixty days of the commencement, or within such longer period as the Cabinet Secretary may, in consultation with the Authority prescribe, apply for registration under this Act: Provided that the period prescribed under this section shall not exceed three years.
Section 57Verify source
§ 58MISCELLANEOUS - 58. SupersessionProvision

If there is a conflict between this Act and any written law (other than the Constitution) about the Authority's powers or functions under this Act, the provisions of this Act prevail.

Section 58. Supersession Section Where there is a conflict between the provisions of this Act and the provisions of any written law (other than the Constitution) with regard to the powers or functions of the Authority under this Act, the provisions of this Act shall prevail.
Section 58Verify source
§ 59MISCELLANEOUS - 59. Exemption from compliance with provisions of this ActProvision

Allows exemption of any person or class of person from compliance with any specified provisions of this Act.

Section 59. Exemption from compliance with provisions of this Act Section exempt any person or class of person from compliance with any specified provisions of this Act; or
Section 59Verify source

Legislative relationships

11 referenced instruments

Names are derived from the stored provision headings and citation-enrichment layer. Treat this as a research index and verify each relationship against the source text.

A–F

6 instruments

  • Authority for damages Section The provisions of this Act

    Section 15

  • Authority or of the Chief Executive Officer under the provisions of this Act

    Section 48

  • Authority shall be audited and reported upon in accordance with the Public Audit Act

    Section 21

  • Authority to co-operate or co-ordinate with any other regulatory body in the exercise of its powers under this Act

    Section 5A

  • Authority under this Act

    Sections 9, 12, 58

  • Civil Procedure Act

    Section 52

G–M

1 instrument

  • Institute of Act

    Section 2

N–S

3 instruments

  • Proceeds of Crime and Anti-Money Laundering Act

    Section 7A

  • Public Prosecutions may appoint public prosecutors for cases arising under this Act

    Section 54A

  • State Corporations Act

    Section 56

T–Z

1 instrument

  • Unclaimed Financial Assets Act

    Section 45A

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