Defined Benefits
The Kenya Power Retirement Benefits Scheme was established under a Trust Deed in January 1970 by the then East African Power and Lighting Company Limited, the predecessor to Kenya Power & Lighting Company Ltd. Between the years 1970 and 1989, the Scheme was managed by ICEA as an insured pension scheme and its membership comprised mainly the management staff. However in January 1990 the Scheme was transferred to the Trustees for self-management. As at the time of the transfer, the Scheme had a fund value of KShs. 83M. The Scheme was established by the Sponsor with the main objective being to provide reasonable benefits to employees (members) upon their retirement or to their dependents in the event of death in service. Besides this core objective, the establishment of the scheme was to also serve the following purposes:
• An incentive through which the employer could attract and retain employees.
• A fund through which employees could save for their retirement.
• A fund through which the employees could enjoy tax relief by virtue of being members of a retirement benefits scheme.
• A boost to the employer’s corporate image and public perception.
The Kenya Power Retirement Benefits Scheme is registered with the Retirement Benefits Authority (RBA) and approved under the Retirement Benefits Act 1997. In addition, the Scheme is also registered with the Kenya Revenue Authority as an exempt approved Scheme under the Income Act (Cap 470).

Defined Contributions
The Kenya Power & Lighting Company Limited, Staff Retirement Benefits Scheme 2006 (“the Scheme”) was established on 1 July 2006, following the closure of the Defined Benefits (DB) Scheme on 30th June 2006. As a Defined Contributions Scheme, the Scheme is managed by a Board of Trustees whose membership is divided equally between Sponsor nominated Trustees and Member nominated Trustees. The administrative functions of the Scheme are undertaken by the Secretariat of the Defined Benefits Scheme in an arrangement whereby the DC Scheme pays an administrative fee to the DB Scheme. The Scheme was established by the Sponsor with the main objective being to provide benefits to employees (members) upon retirement or to their dependents in the event of death in service. Besides this core objective, the Scheme does serve the following purposes:
• An incentive through which the employer can attract and retain employees.
• A fund through which employees can save for their retirement.
• A fund through which the employees can enjoy tax relief by virtue of being members of the retirement benefits scheme.
• A boost to the employer’s corporate image and public perception.
The Scheme is registered with the Retirement Benefits Authority (RBA) and approved under the Retirement Benefits Act 1997. In addition, the Scheme is also Registered by the Kenya Revenue Authority (KRA) as an exempt approved Scheme under the Income Act (CAP 470) – ‘The Income Tax (Retirement Benefits) Rules 1994’