1. To help employees spread the cost of medical care so that it becomes manageable in their retirement age.
  2. Create a platform to facilitate the need of the retiring members access affordable medical coverage .
  3. Cater for the continuation of medical coverage for members who leave before attaining retirement age.
  4. Comply with existing retirement benefits legal framework, including the Post-Retirement Medical Funds guidelines issued by the Retirement Benefits Authority.

Collection of Contribution

Collections will be through the payroll system based on completed application forms by each members.

Coordination of Administrative Function

This will involve collection of data, record keeping and issuance of benefit statements to members by the administrator.

Medical Cover Services Provision

  • Member to utilize PRMF fund to purchase medical cover from an insurance company
  • Member to utilize PRMF to purchase an annuity and use annuity income to purchase medical cover from an insurance company

Investment Management

The investment of the funds will be regulated by RBA. This will initially utilize the investment policy of the scheme and a separate investment policy will be prepared once the funds exceed Kshs.50 million.

Key Features

A defined contribution PRMF embedded within the Pensions fund:

  1. Membership to PRMF is voluntary
  2. Members who join PRMF to contribute a minimum of 1% of pensionable salary
  3. Periodic reviews recommended to advise on suitability of contribution amounts
  4. Retiree purchases the desired level of benefits
  5. Medical benefits dependent on accumulated savings at retirement

Benefit provision through purchasing desired medical cover on retirement by:

  • Drawdown on accumulated PRMF benefits or
  • From annuity income where the annuity is purchased using accumulated PRMF benefits

Commencement Date: 01 November 2021


Outpatient Benefit200,000150,000100,00050,00050,000
Inpatient Benefit5,000,0003,000,0001,000,0001,000,000500,000
Members Age (Years)Period to Retirement (Years)MM+1MM+1MM+1MMM+1