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Section 38(1A) of the Retirement Benefits Act was amended on 27th April 2020 to allow scheme members to use a prescribed portion of their benefits to purchase a residential house from such institutions and on such terms as may be prescribed in the regulations made by the Cabinet Secretary.
In exercise of the powers conferred by Section 55 of the Retirement Benefits Act, the Cabinet Secretary vide Legal Notice No. 192 of 2020 gazetted the Retirement Benefits (Mortgage Loans) (Amendment) Regulations, 2020 which came into effect on 14th September 2020, amending the Retirement Benefits (Mortgage Loans) Regulations 2009 (hereinafter referred to as “regulations”). The said regulations provide that all schemes shall prescribe minimum requirements and procedures to enable scheme members utilize a portion of their accrued benefits to purchase residential houses.
The Board of Trustees of Kenya Power Pension Fund have developed these rules and procedures to operationalize the regulations and to give a framework within which members will be able to access their accrued benefits to secure a residential house.