University established provident fund for all staff
Mount Kenya University (MKU) has created a provident fund to benefit retiring staff and to cater to bereaved families of deceased employees.
It has been registered with the Retirement Benefits Authority (RBA) as Mount Kenya University Staff Provident Fund.
MKU founder and Chairman Prof Simon Gicharu announced this on 15 December 2017 during the university’s 13th graduation ceremony, held at Happy Valley Grounds in Thika.
“The main purpose of the provident fund will be to provide retirement benefits for members of staff when they attain retirement age. In addition, the fund will provide relief to dependants of members who die while employed,” Prof Gicharu announced.
The provident fund will be built through member and employer contributions, and will be administered by trustees.
It will be run professionally, guided by the Trustee Act, Retirement Benefits Act and regulations, and the Income Tax rules, among other relevant legal frameworks.
The creation of the staff provident fund is among recent developments at the university as it seeks to create a deeper social impact in society.
Earlier in the year, MKU established a foundation to create a formal platform for managing its scholarship programme and community outreach activities.
The foundation’s mission is “To advocate for and support the advancement of higher education in Mount Kenya University by obtaining, investing and administering grants”.
Towards this, Prof Gicharu said, the foundation will establish an endowment fund as well as lobby for scholarships and bursaries for students.
The foundation will also manage grants from the university that are meant for community outreach activities and student empowerment.
It was established to normalise and increase the university’s social support, previously administered without a specially created structure.
In the last five years, for instance, the university has directly awarded an upward of 100 scholarships. With a foundation now in place to manage such support, Prof Gicharu predicts a much bigger impact.
“We are committed through the foundation to increase these scholarships to 50 annually,” he said.