The KNEST Scheme
A defined-contribution scheme that combines long-term retirement savings with short-term financial support for the informal sector.
A scheme that grows with every saving
KNEST is an Individual Contribution Scheme designed to enable informal-sector workers to save towards their retirement. Members’ savings are pooled into a fund regulated by the Retirement Benefits Authority and overseen by a Board of Trustees.
Regulated by the Retirement Benefits Authority (RBA)How your saving is split
KNEST combines long-term retirement savings with short-term financial support. With a minimum of just KSh 50 a day, every saving is split two ways.
Allocated to long-term savings for your retirement, growing steadily over time.
Set aside as short-term savings — a financial cushion against daily cash-flow shocks and emergencies.
Access to benefits before retirement
A member who leaves the scheme before reaching the eligible withdrawal age may access up to 50% of their accumulated savings as a lump sum. Members then have the following options:
- Transfer the remaining savings to another registered retirement scheme, or leave the funds in the scheme until eligible to withdraw them.
- Members who stop saving before the withdrawal age may leave their savings in the scheme as deferred benefits, held until they reach the eligible withdrawal age.
- A member who withdraws due to ill health is entitled to the full value of their accumulated savings as a lump sum. On a member’s death, the full accumulated credit is paid to the nominated beneficiary or beneficiaries.
- Members who permanently emigrate from Kenya may request payment of their full accumulated savings as a lump sum.
Benefits at every stage of life
On reaching the agreed retirement (withdrawal) date, a member is entitled to their full accumulated savings, paid periodically through an annuity or income-drawdown arrangement. Members also have the following benefits:
- Members who withdraw before the early-withdrawal date may access up to 50% of their accumulated savings as a lump sum.
- Members who stop saving but keep their savings in the scheme remain entitled to receive their accumulated funds at retirement through an annuity or income drawdown.
- A member who withdraws due to ill health is entitled to their full accumulated savings as a lump sum. On a member’s death, the full accumulated savings are paid as a lump sum to the nominated beneficiary or beneficiaries.
- Where a member’s pension entitlement is considered trivial, they may opt to receive the entire benefit as a lump-sum payment.
- Members who permanently relocate outside Kenya may access their full accumulated savings as a lump sum upon request.
Death of a member
If a member dies, a lump-sum benefit equal to their accumulated credit as at the date of death is payable to the member’s nominated beneficiary, in such proportions as the Trustee may determine.
Regulation & tax relief
The Individual Contributory Scheme is regulated by the Retirement Benefits Authority (RBA).
Members can claim tax relief on their pension savings up to the lower of: 30% of taxable income for the year; or KSh 360,000 per year (KSh 30,000 per month if saving for only part of the year); or any other limit set from time to time under the Income Tax Act.
Ready to join the scheme?
Any Kenyan aged 18 and above can join. Register and start saving from as little as KSh 50 a day.
Start saving now — dial *254#