1: WEBTEXT/49541/65111/E97ken01.htm
Kenya.The Retirements Benefits Act, 1997
NATLEX database

KENYA

THE RETIREMENTS BENEFITS ACT, 1997

No. 3 of 1997

Date of Assent: 22nd August, 1997

Date of Commencement: By Notice


ARRANGEMENT OF SECTIONS

PART I - PRELIMINARY

PART II - THE RETIREMENT BENEFITS AUTHORITY

PART III - REGISTRATION OF RETIREMENT BENEFITS SCHEMES AND MANAGERS

PART IV - REGULATION AND SUPERVISION OF RETIREMENT BENEFITS SCHEMES

PART V - INSPECTION AND APPOINTMENT OF INTERIM ADMINISTRATOR

PART VI - APPEALS

PART VII - MISCELLANEOUS

SCHEDULE PROVISIONS AS TO THE CONDUCT OF THE BUSINESS AND AFFAIRS OF THE BOARD.


An Act of Parliament to establish a Retirement Benefits Authority for the regulation, supervision and promotion of retirement benefits schemes, the development of the retirement benefits sector and for connected purposes

ENACTED by the Parliament of Kenya as follows:

PART 1 - PRELIMINARY

1. Short title and commencement. This Act may be cited as the Retirement Benefits Act. 1997. and shall come into operation on such date as the Minister may, by notice in the Gazette, appoint and different dates may be appointed for different provisions.

2. Interpretation. In this Act, unless the context otherwise requires:

"Actuary" means a fellow of the Institute of Actuaries in England, or of the Faculty of Actuaries in Scotland, or of the Canadian Institute of Actuaries, or a person holding such equivalent qualification as the Board may, by notice in the Gazette, prescribe;

"Authority" means the Retirement Benefits Authority established by section 3;

"Board" means the Board of Directors of the Authority constituted under section 6;

"Chief Executive Officer" means the Chief Executive Officer of the Authority appointed under section 11;

"financial year" means the financial year of the Authority prescribed by section 19;

"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 the manager of a scheme fund;

"member" means a member of a retirement benefits scheme and includes a person entitled to or receiving a benefit under a retirement benefits scheme;

"Minister" means the Minister for the time being responsible for matters relating to finance;

"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, 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;

"Tribunal" means the Appeals Tribunal established under section 48;

"trustee" means a trustee of a scheme fund.

PART II - THE RETIREMENT BENEFITS AUTHORITY

3. Establishment and incorporation of the Retirement Benefits Authority.

4. Headquarters. The headquarters of the Authority shall be in Nairobi.

5. Objects and functions of the authority. The object and functions of the Authority shall be to:

6. Board of Directors. The management of the Authority shall vest in a Board of Directors of the Authority which shall comprise:

7. Powers of the Board. The Board shall have all powers necessary for the performance of its functions under this Act and in particular, the Board shall have power to:-

8. Conduct of business and affairs of the Board. 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.

9. Delegation by the Board. 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.

10. Remuneration of Board members. The Authority, in consultation with the Minister, shall pay members of the Board such remuneration, fees or allowances for expenses as it may determine.

11. The Chief Executive Officer.

12. Staff of the Authority.

13. The common seal of the Authority.

14. Protection from personal liability. 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.

15. Liability of the Authority for damages. 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 interests 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.

16.The Retirement Benefits Levy.

17. The Retirement Benefits Authority Fund.

18. Investment of funds of the Authority

19. Financial year. The Financial year of the Authority shall be the period of twelve months ending on the thirtieth June in each year.

20. Annual estimates.

21. Accounts and audit.

PART III - REGISTRATION OF RETIREMENT BENEFITS SCHEMES AND MANAGERS

22. Retirement benefits schemes and managers to be registered.

23. Registration.

24. Requirements for registration of schemes.

25. Requirements for registration of managers. No applicant for registration as a manager shall be registered unless such applicant:

26. Requirements with regard to trustees.

27. Refusal of registration.

28. Deregistration.

29. Duration of certificate of registration. Subject to this Act, a certificate of registration shall remain in force until, in the case of a scheme, 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, as the case may be, or in the case of a manager, such manager is deregistered.

30. Register.

31. Use of register in evidence.

PART IV - REGULATION AND SUPERVISION OF RETIREMENT BENEFITS SCHEMES

32. Scheme funds.

33. Statutory contributions.

34. Annual report and accounts.

35. Actuarial evaluations. 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.

36. Protection against attachment. 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 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.

37. Investment scheme funds.

38. Restrictions on use of scheme funds.

39. Unsafe and unsound practices.

40. General obligations of trustees and managers. The trustee or manager of a scheme shall:

PART V - INSPECTION AND APPOINTMENT OF INTERIM ADMINISTRATOR

41. Inspection.

42. Powers of the inspector.

43. Inspection report. 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.

44. Directions to manager. The Chief Executive Officer may, by notice in the prescribed form, require the trustees or the manager 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.

45. Appointment of interim administrator.

PART VI- APPEALS

46. Appeals to the Chief Executive Officer.

47. Establishment of Appeals Tribunal.

48. Appeals to the Tribunal.

49. Powers of Appeals Tribunal.

50. Refusal or failure to give evidence. Any person summoned by the Tribunal to attend and give evidence or to produce any records, books of account, statements or other documents, or required to answer interrogatories and who, without sufficient cause:

51. Costs.

Provided that an order for costs against the Government shall not be enforced save in the manner provided for by the Government Proceedings Act.

52. Rules for appeals to the Appeals Tribunal.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 shall apply as if the matter appealed against were a decree of a subordinate court exercising original jurisdiction.

PART VII - MISCELLANEOUS

53. General penalty.

commits an offence and shall be liable, on conviction, to a fine not exceeding one hundred thousand shillings, or to imprisonment for a term not exceeding one year, or to both.

54. Offences by corporate bodies, partnerships, principals and employees.

55. Regulations.

56. Exemption. The provisions of the State Corporations Act shall not apply to the Authority.

57. Transitional provisions. 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 Minister 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.

58. Supersession. 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.

SCHEDULE PROVISIONS AS TO THE CONDUCT OF BUSINESS AND AFFAIRS OF THE BOARD.

1.Tenure of office.

2.Vacation of office. A member other than the chairman or an ex officio member may

3. Meetings.

4. Disclosure of interest.

5. The common seal. The affixing of the common seal of the Authority shall be authenticated by the signatures of the chairman and the Chief Executive Officer and any document required by law to be made under seal and all decisions of the Board may be authenticated by the signatures of the chairman and the Chief Executive Officer:

Provided that the Board shall, in the absence of either the chairman or the Chief Executive Officer, in any particular matter nominate one member to authenticate the seal of the Board on behalf of either the chairman or the Chief Executive Officer.

6. Contracts and instruments. Any contract or instrument which, if entered into or executed by a person not being a body corporate, would not require to be under seal, may be entered into or executed on behalf of the Authority by any person generally or specially authorised by the Authority for that purpose.

7. Minutes. The Board shall cause minutes of all proceedings of meetings of the Board to be entered in books kept for that purpose.



ILO Home International Labour Organization
NATLEX database
Disclaimer
infonorm@ilo.org