Skip to main content
KNEST Logo

KENYA NATIONAL ENTREPRENEURS SAVINGS TRUST (KNEST) GENERAL TERMS AND CONDITIONS

  1. Introduction

These General Terms and Conditions govern the relationship between KNEST and the Member. Specific terms shall apply to short term and long-term savings components as stipulated in this document.

  • Definitions
  • Benefits, means investments and benefits in money or monies worth that have accrued to the Member.
  • Early withdrawal, means withdrawal at the fiftieth (50th) birthday of a member where the exact date of birth is known and where it is not known the first day of the month in the year in which his/her birthday is deemed by the Sponsor to occur provided that the member has been in the scheme for an interrupted period of five (5) years.
  • Eligible Person, means any natural person who is resident in Kenya and has reached at least eighteen (18) years of age. 
  • Financial Inclusion Fund, or “Hustler Fund” means the Hustler Fund established through the Public Finance Management (Financial Inclusion Fund) Regulations, 2022 issued and published under the Public Finance Management Act, 2012.
  • Long term savings, means 70% of any contribution made by a member (pension remittance) meant for retirement.
  • Member, means a person who has been admitted to Membership of the Scheme and includes a person entitled to or receiving a benefit under the Scheme.
  • Short term savings, means 30% of any contribution made by a member, a financial facility to cater for daily cash flow shocks of the members of the Scheme. This facility does not include the thirty percent (30%) savings component retained by the Financial Inclusion Fund for its customers.
  • “Trustee” means the Trust Corporation which is the Kenya National Entrepreneurs Savings Trust Public Limited Company.
  • “Platform Provider” means the entity that owns, operates, manages, or makes available the platform through which KNEST services will be available to the Member, including its associated systems, software, content, features, and services.
  • Eligibility for Membership
  • Membership to the Scheme is open to all individuals that meet the minimum requirements for an eligible person as follows:  
    • Any Kenya Citizen or person ordinarily resident in Kenya who has attained the age of eighteen (18) years and is employed in the Informal Sector, or the Formal Sector is eligible to apply for enrolment as a member of the Scheme.
    • The application for registration shall be completed and submitted through an electronic scheme administration platform.
    • A member shall be informed of his date of membership through the electronic scheme administration platform prescribed by the Trustee.
  • Opt-in Channels

The Scheme allows for two channels of enrolment:-

  1. A person may opt into the Scheme through direct registration and direct contributions. Upon each contribution, the amount is automatically apportioned in a 30:70 ratio, whereby thirty percent (30%) is allocated to Short-Term Savings, and seventy percent (70%) is allocated to Long-Term Savings (Pension Remittance).
  2. A person may opt in through the Financial Inclusion Fund (Hustler Fund) borrowing platform.  Under this arrangement, 70% of 5% of the loaned amount is what constitutes Customer’s pension (the “Pension Remittance to KNEST”) which is transferred to KNEST. The pension remittances from Hustler Fund is managed as a segregated fund, invested exclusively in Government securities. The 30% of the 5% is retained by the Financial Inclusion Fund and managed on behalf of the  Customer.  Terms governing contributions (Clause G) do not apply to such a member.
  3. Benefit Type

The scheme provides for 8 types of benefits as listed below:

  1. Retirement Benefits at Withdrawal Date
    1. A member who reaches an agreed Withdrawal date shall be entitled to the whole of his accumulated credit which shall be paid periodically as agreed with the Trustee in the form of Annuity or Income Drawdown following the immediate Annuity or Income Drawdown rates applicable and available from the Scheme.
  2. Benefits on withdrawal on or after attaining an Early Withdrawal date but before the Withdrawal Date
    1. A member who wishes to withdraw from the scheme at or after attaining the Early Withdrawal Date shall be entitled to purchase an Annuity or an Income Drawdown following the immediate Annuity, or Income Drawdown rates respectively applicable and available from the Scheme subject to a 5-year uninterrupted membership in the scheme.
  3. Early Withdrawal from Scheme by a Member
    1. A Member who wishes to withdraw from the scheme before attaining the specified early withdrawal date shall be entitled to a lump sum benefit of an amount not exceeding the value of 50% (fifty percent) of his/her accumulation credit at the time of leaving.
    1. The member may elect one of the following options: –

Option 1

  1. Transfer the whole accumulated credit to another registered scheme.
  2. In such a case, the member shall first request the Trustee of the other registered scheme to accept the transfer of his accumulated credit and furnish to the Trustee such written acceptance.
  3. The Trustee shall then transfer the whole of the member’s accumulated credit to the other registered scheme.

Option 2

Leave his accumulated credit in the scheme as a deferred member which the member may access upon attaining the age at which he would be eligible to withdraw whereupon the deferred member shall be entitled to a benefit of an amount equal to the amount held in his accumulated credit at that time.

  1. Deferred benefits payable from Withdrawal Date
    1. A Member who before reaching an agreed date of withdrawal stops making contributions to the scheme and leaves his accumulation credit in the scheme shall be entitled to the whole of his deferred accumulated credit payable periodically as agreed with the Trustee in the form of an Annuity or Income Drawdown rates respectively applicable and available from the scheme.
  2. Benefits of Ill health withdrawal
    1. A member who wishes to withdraw from the scheme on grounds of ill health shall be entitled to the whole of his accumulated credit in a lump sum.
  3. Death Benefits
    1. If a member dies, there shall be payable a lump sum benefit equal to his/her accumulated credit as at the date of death to the member’s nominated beneficiary in such proportions as Trustee may determine.
  4. Trivial Benefits
    1. If a member is entitled to a pension which after commutation becomes trivial, the member may elect to be paid a lump sum of the total benefits.
  5. Benefits on Emigration
    1. A member who emigrates without present intention to reside in Kenya shall be entitled and paid on request the whole of his accumulated credit in a lump sum.
    1. For this Rule, it shall suffice for the Member to show that she has become a citizen of or set a permanent residence in another country.
  6. Benefit Claim Requirements by Benefit Type

Members and/ or their beneficiaries must submit benefits claim form duly filled with necessary details as follows:

  1. Retirement Benefits at Withdrawal Date

Requirements

  • System-based verification of age using the national identification database/IPRS database
  • Submission of duly filled online retirement benefit claim form.
  • Selection of preferred payment option (lump-sum or annuity) via the Scheme portal.
  • Digital capture and verification of payment details.
  • Electronic approval of the claim by the Administrator and Trustees.
  • Processing of payment through the Scheme’s integrated payment platform and notification to the retiree.
  • Benefits on withdrawal on or after attaining an Early Withdrawal date but before the Withdrawal Date

Requirements
The claim shall be lodged and processed through the Scheme’s digital platform in accordance with the following requirements:

  • Submission of Early Withdrawal Notice – The member shall log into the digital portal and submit a withdrawal notice indicating intention to access benefits under the early withdrawal provision.
  • Verification of Age and Eligibility – The system shall automatically verify the member’s age against the national identification database/IPRS database and confirm eligibility based on the Scheme Rules.
  • Digital Identity Verification – The member shall authenticate the claim through national ID or biometric verification.
  • Completion of Early Withdrawal Claim Form – The member shall complete and submit the electronic claim form via the Scheme portal.
  • Bank or Mobile Payment Details – The member shall provide or confirm payment details through the integrated e-payment system, which shall verify the accuracy and validity of such details.
  • System Validation – The digital platform shall automatically validate the member’s contribution history, vesting status and benefit computation in line with applicable rules.
  • Approval Workflow – The Administrator and Trustees shall review, validate and approve the claim electronically through the system’s workflow module.
  • Benefit Payment – Upon approval, the Scheme shall disburse the benefits via secure electronic payment (bank or mobile money transfer).
  • Notification and Recordkeeping – The member shall receive an automated notification confirming payment, and the system shall archive all related records electronically for audit and compliance purposes.
  • Early Withdrawal from the Scheme by Member

Requirements

  • Submission of an exit notification directly via the member portal.
  • Verification of member identity through digital ID or biometric authentication.
  • Entry and validation of payment details (bank or mobile wallet).
  • Administrator and Trustee review and approval through the digital workflow.
  • Confirmation of benefit payment issued electronically to the member.
  • Online submission of a transfer request form.
  • Provision of receiving scheme details verified through the RBA’s digital registry.
  • Digital validation of member identity.
  • Administrator and Trustee electronic approval.
  • Transfer confirmation issued to both the transferring and receiving schemes.
  • Deferred benefits payable from Withdrawal Date

Requirements

  • Submission of an online exit notification.
  • Selection of the “defer benefits” option on the member portal.
  • Issuance of a digital confirmation and deferred benefit statement.
  • Periodic automated updates sent to the member through the system.
  • Benefits of Ill health withdrawal

Requirements

  • Upload of a certified medical report issued by a government medical facility.
  • Digital identity verification of the member.
  • Confirmation of contribution status through the Scheme’s digital records.
  • Completion of the online ill-health benefit claim form.
  • Automated system validation of contribution and vesting status.
  • Electronic approval by the Administrator and Trustees.
  • Digital disbursement of benefits with instant confirmation to the member.
  • Death Benefits

The claim for death benefits shall be processed through the Scheme’s digital platform, subject to the following:

  • Online death notification by the nominated beneficiary or trustee.
  • Upload of a certified death certificate or burial permit.
  • Verification of beneficiary details as captured in the member’s profile at registration.
  • Completion of an online claim form by the nominated beneficiary.
  • Provision and verification of bank account or mobile payment details through the integrated payment gateway.
  • Digital validation and approval by the Scheme Administrator and Trustees.
  • Payment confirmation to the beneficiary via SMS, email, or dashboard notification.
  • Trivial Benefits

Requirements

  • Automatic system determination of trivial benefits threshold.
  • Digital notification to the member of commutation eligibility.
  • Online consent by the member to receive the lump-sum payment.
  • Verification of payment details through the platform.
  • Approval and disbursement through the digital payment process.
  • Payment confirmation sent electronically to the member.
  • Benefits on Emigration

Requirements

The claim for emigration benefits shall be submitted and processed through the Scheme’s digital platform, subject to the following requirements:

  1. Submission of Emigration Notice
    1. The member shall lodge a notice of intent to emigrate through the Scheme’s online portal, indicating the destination country and anticipated date of departure.
  2. Proof of Emigration
    1. The member shall upload certified copies of documentation confirming permanent relocation, which may include:
      1. Valid emigration or permanent residence visa,
      1. Valid foreign work or residence permit,
      1. Relocation or settlement confirmation from an embassy or immigration authority.
  3. Verification of Identity
    1. The system shall verify the member’s identity through the national ID database or biometric authentication prior to processing the claim.
  4. Cessation of Contributions
    1. The Scheme shall confirm through the digital records that contributions have ceased.
  5. Completion of Emigration Benefit Claim Form
    1. The member shall complete the online claim form and digitally sign the declaration of permanent emigration.
  6. Provision of Payment Details
    1. The member shall provide bank account details in Kenya or an international bank account in the destination country, verified through the integrated payment gateway.
    1. All payments shall be made electronically in compliance with applicable foreign exchange and regulatory requirements.
  7. System Validation and Approval
    1. The digital system shall automatically compute the member’s benefit entitlement based on scheme rules and vesting status.
    1. The Administrator and Trustees shall review and approve the claim electronically within the platform’s workflow.
  8. Payment and Notification
    1. Upon approval, the benefit shall be paid electronically to the verified account.
    1. The member shall receive automated confirmation of payment via SMS, email or dashboard notification.
  9. Archiving and Recordkeeping
    1. All claim documentation and approvals shall be stored digitally in the Scheme’s document management system for audit and compliance purposes.
  10. ContributionsEach Member shall in each Contribution Year contribute a minimum sum of Kenya Shillings 50/- per day. This does not apply to members who opt-in through the Financial Inclusion Fund and per Clause D(ii).Contributions by, or for the benefit of a Member shall be remitted electronically (except in special circumstances to be determined by the Trustee on a case basis) using the electronic scheme administration platform or any such other mode as shall be determined by the Trustee from time to time.A Member shall be informed electronically (except in special circumstances to be determined by the Trustee on a case basis) of the split of his contributions when remitting the contributions. Contributions to the Scheme may be made by the Member, or on the Member’s behalf by a company, association, or self-help group with which the Member associates. The contributions may be in a lump sum upfront, in arrears, by instalments, or at such intervals as may be agreed between the Trustee and the Member. The aggregate tax-deductible contributions to the Scheme by and in respect of a Member who has a taxable income for any Contribution Year shall be the lower of thirty percent (30%) of his contributions for such year or shillings Three Hundred and Sixty Thousand (Kshs. 360,000.00) or where contributions are made in respect of part of a year then Shillings Thirty Thousand (Kshs. 30,000.00) or in either case such other maximum figure as may from time to time be specified under the Income Tax Act.Record of Contributions
  11. The Trustee shall maintain and submit to the Authority a quarterly record of contributions within fifteen (15) days of the end of every quarter.
  12. The quarterly record of contributions will comply with the Act.
  13. Accessing Benefits
    1. Pension Savings (Long term)
  14. Members or their nominated beneficiaries shall be required to submit a formal request together with all necessary documentation to access benefits as specified in these terms and conditions.
  15. Requests for benefits must be made at least 30 days prior to the desired payout date.
    1. Short term Savings
  16. At least one month lock-in period shall apply for new members before they can start accessing their funds.
  17. At most two days turnaround period shall apply on withdrawal of funds
  18. Benefit Calculation
  19. Benefits will be calculated based on the Member’s accumulated contributions, investment returns, and Scheme rules.
  20. The Scheme reserves the right to adjust benefit calculations in line with statutory changes.
  21. Withdrawal Conditions

Members wishing to withdraw from the Scheme can do so in accordance with these terms and conditions.

  • Beneficiary Designation
  •  Members are required to designate beneficiaries.
  •  Members are encouraged to update beneficiary register whenever there are changes.
  • Benefits will be administered in accordance with these terms and conditions.
  • Data Protection and Privacy
  1. KNEST and Members shall comply with the Kenya Data Protection Act, 2019 (“DPA”) and all applicable privacy regulations when submitting or accessing personal data through the Platform.
  2. The Member acknowledges that KNEST  act as the Data Controller in respect of all personal data collected through the Platform and that the Data Controller has engaged a third-party service provider (the “Platform Provider”) to host and support the pension administration system. The Platform Provider acts solely as a Data Processor on behalf of KNEST.
  3. Members acknowledge that their personal data will be processed by KNEST and, where necessary, by the Platform Provider with KNEST’s authorization and only for purposes of pension administration, service delivery, security, and lawful compliance.
  4. KNEST and the Platform Provider shall implement appropriate technical and organisational measures to safeguard personal data against unauthorised access, loss, misuse, or alteration.
  5. Personal data may be shared with authorised third-party processors engaged by KNEST or the Platform Provider for legitimate service delivery purposes. All such parties shall be bound by obligations of confidentiality and data protection consistent with the DPA.
  6. Members may exercise their statutory data subject rights (access, correction, objection, deletion, etc.) by contacting KNEST. The Platform Provider will facilitate such requests only through KNEST.
  7. Nothing in these Terms creates a direct contractual relationship between Members and the Platform Provider. Members acknowledge that any claims relating to data protection or processing shall be directed solely to KNEST in its capacity as Data Controller.
  • Disclaimer and Limitation of Liability
  1. Members acknowledge that the Platform is operated on behalf of KNEST by a third-party Platform Provider.
  2. To the maximum extent permitted by law, the Platform Provider shall not be liable to Members for any claims arising from the use of, inability to use, or performance of the Platform.
  3. All Member claims relating to the Platform or the services shall be directed exclusively to KNEST.
  • Members acknowledge that the Platform Provider is not a party to these Terms and Conditions and provides technology services solely on behalf of KNEST.
  • Members shall not bring any claim, action, or demand directly against the Platform Provider in connection with their use of the Platform. Any such matters shall be addressed exclusively between the Member and KNEST.
  • Without prejudice to the foregoing, the Member acknowledges and agrees as follows:
  • Whereas KNEST may from time to time contract various service providers to provide the platform and render various services, it shall be solely responsible for managing the relationship with the Customer and addressing any issues or complaints.
  • No direct legal relationship is created between the Service Provider and the Members on account of thee Terms and Conditions.
  • The responsibility for investment of the pension funds, shall solely be borne by KNEST as a licensee of the Retirement Benefits Authority.
  • Intellectual Property
  1. You acknowledge that the intellectual property rights in the platform(s) (and any amendments, upgrades or enhancements thereto from time to time) and all associated documentation are vested in the service providers or in other persons from whom they have been given a right to use and to sub-license.
  • You shall not infringe any such intellectual property rights. You shall not duplicate, reproduce or in any way tamper with any documentation or functionality of the platform without prior written consent.
  • All intellectual property rights in the Platform, software, interfaces, algorithms, and related materials are owned by or licensed to the Platform Provider. Members obtain no rights in or to the Platform other than a limited, revocable right to access it for purposes of interacting with KNEST’s pension services.
  • Service Availability and Maintenance

The Platform is provided on an “as-is” and “as-available” basis.

  1. Access may be suspended or interrupted due to maintenance, security updates, system upgrades, third-party failures, or events beyond KNEST’s or the Platform Provider’s reasonable control.
  2. Members acknowledge that neither KNEST nor the Platform Provider guarantees uninterrupted access.
  • Indemnity by Members

Members agree to indemnify and hold harmless KNEST and its Platform Provider from any losses, claims, or liabilities arising from: (i) inaccurate or unlawful information submitted by Members; misuse of the Platform; or (iii) breach of these Terms by the Member.

  • Dispute Resolution
  • Any disputes arising from the interpretation or application of these Terms and Conditions will be addressed through the internal dispute resolution mechanisms.
  • Unresolved disputes may be escalated to the Retirement Benefits Authority or relevant legal bodies before approaching the courts of law.
  • Amendments to Terms
  • KNEST Scheme reserves the right to amend these Terms and Conditions at any time, subject to notification to members.
  • Any updates or amendment to these Terms and Conditions terms will be communicated to the members through electronic media and KNEST website www.knest.go.ke and will take effect from the date of notification of the update or amendment.
  • Governing Law

These Terms and Conditions are governed by the Laws of the Republic of Kenya.

  • Acceptance

By participating in the Scheme, members acknowledge that they have read, understood, and agree to abide by these Terms and Conditions.