Murang'a University Staff Pension Scheme
About the Scheme
Murang'a University of Technology
Staff Pension Scheme
The MUT-SPS was established on 1st October 2014 by Murang'a University of Technology to provide retirement and other benefits to its employees. The scheme operates as a defined contribution arrangement, regulated by the Retirement Benefits Authority (RBA) and approved by the Kenya Revenue Authority (KRA). Assets are held separately from the Sponsor's assets.
Core Functions
Key Information
Established
1 October 2014
Regulated By
RBA & KRA
Your Money's Journey
Member
10%Sponsor (MUT)
20%Member Account
30% TotalAt Retirement
1/3 Cash + 2/3 Annuity/DrawdownThree Factors That Determine Your Benefits
Your Contribution Level
Including additional voluntary contributions (AVCs) with no upper limit.
Sponsor Contributions
20% of your pensionable salary allocated to your account monthly.
Investment Returns
Returns credited to your account based on scheme investment performance.
Annuity vs Income Drawdown
| Feature | Annuity | Income Drawdown |
|---|---|---|
| Payment | Perpetual/lifetime fixed payments | Up to 12% p.a. of balance |
| Flexibility | Fixed amount | Member chooses amount |
| Duration | Lifetime | 10-year contract (renewable) |
| After Death | Guaranteed period applies | Balance paid to beneficiaries |
Tax Benefits
- Up to Ksh 30,000/month or 30% of pensionable emoluments (whichever lower) is tax deductible
- Contributions deducted before tax — automatic relief
- Exempt account: no income tax on returns
Interest on Member Account
- Based on annual scheme performance
- Exempt account: no income tax
- Non-exempt account: 30% tax rate
- Mid-year leavers: receive differential interest
Our Core Values
Integrity
We act with honesty and transparency.
Stewardship
We are careful and responsible managers of the funds.
Teamwork
We work collaboratively to achieve our common goals.
Innovation
We continuously seek new ways to improve.
Excellence
We strive for the highest quality in all we do.