The Central Bank of Kenya Pension Fund (‘The Fund’) was established under a Trust dated 1st July 1968. The Fund is a Defined Benefit scheme, with the main objective being the provision of pension and other ancillary benefits to the members upon their retirement at a specified age, as well as relief for the dependents of the deceased members, as defined in the Trust Deed and Rules.

New Guidelines - Treasury Circular No. 18/2010

The Circular of November 24th, 2010, introduced new guidelines to Public Sector Pension Schemes. Key among them were that;

• All Defined Benefit (DB) Schemes be converted to Defined Contribution (DC) not later than 1st July 2011.
• Members to contribute a minimum of 5% of their pensionable emoluments while the employer contributes double the members’ contribution up to a limit of 20%
• Members with less than 5 years to retirement age had an option to remain in the Defined Benefit Scheme or transfer to the new DC scheme.

Implementation of the Circular led to the establishment of the Banki Kuu Pension Scheme 2012 which commenced operations in October 2012 and was registered by RBA in December 2012.

Sponsorship And Funding

The Central Bank of Kenya, as Sponsor of the Fund, undertakes to make all necessary contributions to ensure the continued solvency of the Defined Benefit scheme. Funding levels are guided by periodic actuarial valuations to ensure that the value of assets is sufficient to meet liabilities as they fall due.