Kenya Statutory and Private Employee Benefits, 2024 Update

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Kenya Statutory and Private Employee Benefits Report Overview

Kenya’s social security system is considered important for the security of workers, their families, and the community. The Kenyan social security system is divided into three pillars – a public scheme, occupational schemes, and individual schemes.

The Kenya employee benefits report provides in-depth industry analysis, information, and insights into employee benefits in Kenya, including an overview of the state and compulsory benefits in Kenya, detailed information about the private benefits in Kenya, insights on various central institutions responsible for the administration of the different branches of social security and the regulatory framework of the employee benefits in Kenya.

Key Regulations ·       The Widows’ and Orphans’ Pensions Act of 1964

·       The National Hospital Insurance Act of 1998

·       The Work Injury Benefits Act of 2007

·       The Employment Act of 2007

Key State and Compulsory Benefits ·       Retirement Benefits

·       Death in Service

·       Short-Term Sickness Benefits

·       Medical Benefits

Key Private Benefits ·       Retirement Benefits

·       Death Benefits

·       Medical Benefits

·       Disability Benefits

·       Accidental Death and Dismemberment Benefits

·       Other Benefits

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Kenya Employee Benefits - Regulations

A few of the laws guiding employee benefits in Kenya are:

  • The Widows’ and Orphans’ Pensions Act of 1964
  • The National Hospital Insurance Act of 1998
  • The Work Injury Benefits Act of 2007
  • The Employment Act of 2007

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Kenya Employee Benefits - State and Compulsory Benefits

The key state and compulsory benefits offered by employers in Kenya are retirement benefits, death in service, short-term sickness benefits, and medical benefits among others.

Retirement Benefits: Retirement benefits (old age) in Kenya are regulated by the National Social Security Fund Act of 2013. This act transformed the NSSF from a provident fund scheme to a pension fund scheme. General supervision is carried out by the Ministry of Labor through a board of trustees. This program is administered by the NSSF. At present, the NSSF operates two funds, the pension fund, and the new provident fund, which provide old-age pension and old-age benefits respectively.

Kenya State and Compulsory Benefits
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Employee Benefits - Private Benefits

The key private benefits offered by employers in Kenya are retirement benefits, death benefits, medical benefits, disability benefits, accidental death and dismemberment benefits, and other benefits.

Retirement Benefits: All the employees of the organization are eligible for the defined benefit (DB) plan and defined contribution (DC) plan scheme benefits. The normal retirement age in Kenya is 60 years for both men and women and the early retirement age is 50 years.

There are many retirement options available for employed individuals, such as provident funds and umbrella funds which combine features of different types of retirement schemes, along with additional benefits such as critical illness cover. These plans are either defined benefit or defined contribution plans. Individuals who subscribe to provident plans may contract an annuity plan from insurance companies to receive a monthly pension.

Kenya Private Employee Benefits

Kenya Private Employee Benefits

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Scope

This report provides a detailed analysis of employee benefits in Kenya:

  • It offers a detailed analysis of the key government-sponsored employee benefits, along with private benefits
  • It covers an exhaustive list of employee benefits, including retirement benefits, death in service, medical benefits, workmen’s compensation insurance, maternity and paternity benefits, unemployment benefits, family benefits, minimum resources benefits, leaves and holidays, and private benefits.
  • It highlights the economic and regulatory situations relating to employee benefits in Kenya.

Key Highlights

  • Retirement Benefits Authority, National Social Security Fund, National Hospital Insurance Fund, and Social Health Insurance Fund are responsible for the functioning of the overall social security system.
  • A person’s national insurance contribution is determined based on their income.
  • An insured person who is unemployed or unable to work and whose benefits have been exhausted is entitled to a credited contribution.
  • In Kenya, employers provide supplementary benefit plans through Public service pension funds, Occupational pension schemes, Individual pension plans, and Umbrella schemes.

Reasons to Buy

  • Make strategic decisions using in-depth information related to employee benefits in the country.
  • Assess employee benefits of the market, including state and compulsory benefits and private benefits.
  • Gain insights into the key employee benefit schemes offered by private employers in the country.
  • Gain insights into key organizations governing the employee benefits market, and their impact on companies.

Table of Contents

  • 1. Executive Summary
  • 2. Introduction
  • 2.1 What is this Report about?
  • 2.2 Definitions
  • 3. Country Statistics
  • 4. Overview of Employee Benefits in Kenya
  • 5. Regulations
  • 6. State and Compulsory Benefits
  • 6.1 Retirement Benefits
  • – Introduction
  • – Eligibility
  • – Benefits
  • – Payment Options
  • – Contribution

  • 6.2 Death in Service
  • – Introduction
  • – Eligibility
  • – Benefits
  • – Payment Options
  • – Contribution

  • 6.3 Long-Term Disability Benefits
  • – Introduction
  • – Eligibility
  • – Benefits
  • – Payment Options
  • – Contribution

  • 6.4 Short-Term Sickness Benefits
  • – Introduction
  • – Eligibility
  • – Benefits
  • – Payment Options
  • – Contribution

  • 6.5 Medical Benefits
  • – Introduction
  • – Eligibility
  • – Benefits
  • – Payment Options
  • – Contribution

  • 6.6 Workers’ Compensation Insurance
  • – Introduction
  • – Eligibility
  • – Benefits
  • – Payment Options
  • – Contribution

  • 6.7 Maternity and Paternity Benefits
  • – Introduction
  • – Eligibility
  • – Benefits
  • – Payment Options
  • – Contribution

  • 6.8 Other Benefits
  • – Unemployment Benefits
  • – Leaves and Holidays

  • 7. Private Benefits
  • 7.1 Retirement Benefits
  • 7.2 Death Benefits
  • 7.3 Medical benefits
  • 7.4 Disability Benefits
  • 7.5 Accidental Death and Dismemberment Benefits
  • 7.6 Other Benefits
  • About GlobalData
  • Contact Us

Table

Table 1: Insurance Industry Definitions

Table 2: Kenya – Country Statistics, 2023

Table 3: Kenya – Retirement Benefits, Tier One, and Tier Two Contribution Rates

Table 4: Kenya – Public Holidays 2024

Table 5: Kenya – Compensation for permanent disablement

Table 6: Kenya – Compensation for total incapacitation

Figures

List of Figures

Figure 1: Kenya – Main Institutions of Social Security System

Frequently asked questions

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