Overview

The Scheme was established under irrevocable trust and commenced operations on 1 January 2012. It operates as a defined contribution pension scheme (the ‘DC Scheme’).

The National Treasury issued Treasury Circular No.18 of 2010 dated 24 November 2010 requiring changes to the public service retirement benefit arrangements. Prior to 1 January 2012, the Employer operated the KenGen Staff Retirement Benefits Scheme (the ‘DB Scheme’) In line with this Treasury Circular, the Board of Directors of the Employer and the Trustees of the DB Scheme implemented the following changes :

  • In the DB Scheme, the benefits are based on years of Pensionable Service and the Final Pensionable Emoluments at the date of retirement or leaving service. 
  • The DB Scheme was closed to new entrants with effect from 31 December 2011 (the ‘Closure Date’). This means that any eligible employee with effect from 1 January 2012 is required to join the DC Scheme.
  • The DC Scheme was consequently established effective 1 January 2012.
  • At the Closure Date, members of the DB Scheme who were below 45 years were required to join the DC Scheme for future accrual of benefits. Accrued (i.e. past service) benefits for these members were retained in the DB Scheme. The DB Scheme was closed to new entrants with effect from 31 December 2011 (the ‘Closure Date’). This means that any eligible employee with effect from 1 January 2012 is required to join the DC Scheme.
  • At the Closure Date, members of the DB Scheme who were 45 years and above were given the option of remaining in the DB Scheme or joining the DC Scheme for future benefit accrual.

Scheme Administration

Scheme Membership

  • žMembership is open to all permanent and pensionable employees of  KenGen who have served the sponsor  for at least 6 months.
  • žMembership is compulsory for all permanent employees.

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