General Terms & Conditions

• Benefits — investments and benefits in money or money's worth that have accrued to the Member.
• Early withdrawal — 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 uninterrupted period of five (5) years.
• Eligible Person — any natural person who is resident in Kenya and has reached at least eighteen (18) years of age.
• Financial Inclusion Fund (“Hustler Fund”) — the Hustler Fund established through the Public Finance Management (Financial Inclusion Fund) Regulations, 2022, issued under the Public Finance Management Act, 2012.
• Long-term savings — 70% of any contribution made by a member (pension remittance) meant for retirement.
• Member — a person admitted to Membership of the Scheme, including a person entitled to or receiving a benefit under the Scheme.
• Short-term savings — 30% of any contribution made by a member; a financial facility to cater for daily cash-flow shocks. This does not include the 30% savings component retained by the Financial Inclusion Fund for its customers.
• Trustee — the Trust Corporation, which is the Kenya National Entrepreneurs Savings Trust Public Limited Company.
• Platform Provider — the entity that owns, operates, manages, or makes available the platform through which KNEST services are available to the Member, including its associated systems, software, content, features, and services.

Membership is open to all individuals meeting the minimum requirements for an eligible person:

• Any Kenyan citizen or person ordinarily resident in Kenya who has attained the age of eighteen (18) years and is employed in the Informal or Formal Sector is eligible to apply for enrolment.
• 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.

The Scheme allows for two channels of enrolment:

1. A person may opt in through direct registration and direct contributions. Upon each contribution, the amount is automatically apportioned in a 30:70 ratio — thirty percent (30%) to Short-Term Savings and seventy percent (70%) 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 constitutes the Customer's pension (the “Pension Remittance to KNEST”), transferred to KNEST and managed as a segregated fund invested exclusively in Government securities. The remaining 30% of the 5% is retained by the Financial Inclusion Fund. Terms governing contributions do not apply to such a member.

The scheme provides for 8 types of benefits:

1. Retirement Benefits at Withdrawal Date — a member who reaches an agreed Withdrawal Date is entitled to the whole of his accumulated credit, paid periodically as agreed with the Trustee in the form of Annuity or Income Drawdown at applicable rates.
2. Benefits on withdrawal on or after the Early Withdrawal Date but before the Withdrawal Date — entitled to purchase an Annuity or Income Drawdown at applicable rates, subject to 5-year uninterrupted membership.
3. Early Withdrawal by a Member — a member withdrawing before the early withdrawal date is entitled to a lump sum not exceeding 50% of his accumulated credit. The member may transfer the whole credit to another registered scheme (Option 1) or leave it as a deferred member (Option 2).
4. Deferred benefits payable from Withdrawal Date — a member who stops contributing and leaves his credit is entitled to the whole deferred accumulated credit, payable periodically as Annuity or Income Drawdown.
5. Ill-health withdrawal — a member withdrawing on grounds of ill health is entitled to the whole accumulated credit as a lump sum.
6. Death Benefits — on a member's death, a lump sum equal to the accumulated credit is payable to the nominated beneficiary in proportions the Trustee may determine.
7. Trivial Benefits — if a pension after commutation becomes trivial, the member may elect a lump sum of the total benefits.
8. Benefits on Emigration — a member who emigrates without present intention to reside in Kenya is entitled, on request, to the whole accumulated credit as a lump sum.

Members and/or beneficiaries must submit a duly filled benefits claim form. Claims are lodged and processed through the Scheme's digital platform, with requirements varying by benefit type and generally including:

• System-based verification of age against the national identification / IPRS database.
• Digital identity or biometric verification of the member or beneficiary.
• Completion of the relevant electronic claim form via the Scheme portal.
• Provision and verification of bank or mobile payment details through the integrated payment gateway.
• System validation of contribution history, vesting status, and benefit computation.
• Electronic review and approval by the Administrator and Trustees through the workflow module.
• Secure electronic disbursement and automated payment confirmation (SMS, email, or dashboard).
• Electronic archiving of all records for audit and compliance.

Specific claims (e.g. ill health, death, emigration) additionally require supporting documents such as a certified medical report, death certificate or burial permit, or proof of permanent relocation, respectively.

Each 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.

Contributions shall be remitted electronically (except in special circumstances determined by the Trustee) using the electronic scheme administration platform. A Member shall be informed electronically of the split of contributions when remitting.

Contributions may be made by the Member or on the Member's behalf by a company, association, or self-help group. They may be in a lump sum upfront, in arrears, by instalments, or at agreed intervals.

The aggregate tax-deductible contributions for a Member with taxable income in any Contribution Year shall be the lower of 30% of contributions or Kshs. 360,000.00 (or Kshs. 30,000.00 for part of a year), or such other maximum specified under the Income Tax Act.

The Trustee shall maintain and submit to the Authority a quarterly record of contributions within fifteen (15) days of the end of every quarter, in compliance with the Act.

Pension Savings (Long-term) — Members or nominated beneficiaries must submit a formal request with all necessary documentation. Requests must be made at least 30 days prior to the desired payout date.

Short-term Savings — A lock-in period of at least one month applies for new members before they can access funds. A turnaround of at most two days applies on withdrawal of funds.

Benefit Calculation — Benefits are calculated based on the Member's accumulated contributions, investment returns, and Scheme rules. The Scheme reserves the right to adjust calculations in line with statutory changes.

• Members are required to designate beneficiaries.
• Members are encouraged to update the beneficiary register whenever there are changes.
• Benefits will be administered in accordance with these terms and conditions.

1. KNEST and Members shall comply with the Kenya Data Protection Act, 2019 (“DPA”) and all applicable privacy regulations.
2. KNEST acts as the Data Controller for all personal data collected through the Platform; the Platform Provider acts solely as a Data Processor on behalf of KNEST.
3. Personal data is processed only for 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.
5. Data may be shared with authorised third-party processors bound by confidentiality and DPA obligations.
6. Members may exercise statutory data subject rights (access, correction, objection, deletion) by contacting KNEST.
7. No direct contractual relationship is created between Members and the Platform Provider; data-protection claims are directed solely to KNEST.

• The Platform is operated on behalf of KNEST by a third-party Platform Provider.
• To the maximum extent permitted by law, the Platform Provider shall not be liable to Members for any claims arising from use of, inability to use, or performance of the Platform.
• All Member claims relating to the Platform or services shall be directed exclusively to KNEST.
• KNEST is solely responsible for managing the relationship with the Customer and addressing complaints.
• Responsibility for investment of pension funds is solely borne by KNEST as a licensee of the Retirement Benefits Authority.

Intellectual property rights in the platform(s) and all associated documentation vest in the service providers or persons from whom they have a right to use and sub-license. Members shall not infringe these rights, nor duplicate, reproduce, or tamper with any documentation or functionality without prior written consent.

Members obtain no rights in the Platform other than a limited, revocable right to access it for purposes of interacting with KNEST's pension services.

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 reasonable control.
2. Neither KNEST nor the Platform Provider guarantees uninterrupted access.

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, (ii) misuse of the Platform, or (iii) breach of these Terms by the Member.

• Disputes arising from the interpretation or application of these Terms will be addressed through internal dispute resolution mechanisms.
• Unresolved disputes may be escalated to the Retirement Benefits Authority or relevant legal bodies before approaching the courts of law.

• KNEST reserves the right to amend these Terms and Conditions at any time, subject to notification to members.
• Updates will be communicated through electronic media and the KNEST website (www.knest.go.ke) and take effect from the date of notification.

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

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