The fund was established in 1965 by an Act of Parliament under Cap 258 of the laws of Kenya .The fund is operated and managed by a Board of Trustees.


The Board of trustees is a body corporate having a common seal. it may in its corporate name sue or be sued ,purchase, hold, manage and dispose of movable and immovable property and enter into contracts as it may deem necessary or desirable.

Composition of the Board

The Board of Trustees shall comprise of:

  1. A Chairman to be appointed by the Minister from amongst the trustees
  2. The Permanent Secretary to the Treasury;
  3. The Permanent Secretary in the Ministry of labour
  4. Seven (7) other trustees appointed by the Minister of whom one shall be the Managing Trustee.

No person shall be appointed as a trustee if he:

  1. Has been convicted of an offence by a court and sentenced to imprisonment for a term of six months or more;
  2. Is adjudged bankrupt [or enters into a composition scheme or arrangement with his creditors;] or
  3. Is disqualified under the provisions of any other written law from appointment as such.

Term of office for trustees

The chairman and other trustees shall hold office for a period of three (3) years, but shall be eligible for re-appointment.

All questions proposed at a meeting of the Board of Trustees shall be decided by a majority of the votes of the trustees present.


The Act provides for compulsory registration of employees and employers as contributors to the fund. The contributing employers are required to take appropriate steps to ensure their employees are registered.

The term “employer” means any public or private body or any person or individual employing one (1) or more employees.

The regulation order does not apply to employees whose terms of engagement are casual in nature.

The registration order provides for registration as members of the Fund of all “employees” of the age of sixteen (16) years and above and all “employers”.


  1. Every contributing employer shall register with the Fund by completing and forwarding the appropriate form to the Fundwithin twenty-one (21) days of first becoming liable to register. (Regulation 3)
  2. The Managing Trustee shall allot a registration number to every contributing employer who is registered with the fund.
  3. Every contributing registered employer will complete and forward to the Fund the appropriate forms in respect of each of his employees who is registrable as a member of the Fund and who has not previously been registered.
  4. The Managing Trustee shall allot a membership number to each employeeregistered (Regulation 5.)
  5. The Managing Trustee shall also forward to a contributing employer membership cards for all members of the Fund who is registered whilst in his employment.
  6. All membership cards shall remain the property of the Fund.
  7. Every contributing employer shall keep a written record of the Fund membership number of each of his employees who is a contributing member.
  8. If the membership card of a member of the Fund is lost or destroyed, a member may apply to the Managing Trustee for the issue of a duplicate membership card. A charge of 2.50 shillings is levied for the issue
  9. Each contributing employer shall notify the Fund of any change of his address.
  10. Every contributing employer shall notify the Fund when any contributing member first enters, or ceases to be in his employment.
  11. Each member of the Fund shall immediately on commencing work for a new contributing employer produce his membership card to such employer for inspection.


The registration of a contributing employer [under regulation 3] may be cancelled upon his making application on the appropriate form if he: –

(a) Ceases to have any contributing member in his employment; or

(b) Has throughout the two previous years employed fewer than the number of employees prescribed for compulsory regis­tration in his case i.e. one or more employees


The ACT provides that no person shall be registered as a member of the Fund if: –

(a) He is an exempt person; or

(b) He is a casual worker

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