How to use M-pesa to save with the Mbao Pension Plan.

How to use M-pesa to save with the Mbao Pension Plan.

Mbao Pension Plan is a voluntarily saving plan, for period of time, which matures at the time of retirement either from a formal or an informal employment.

Mbao Pension Scheme was started in the year 2009 as an Individual Pension Plan (IPP) in order to take care of the informal sector, but due to public demand it is now opened to all Kenyans above 18 years and has ID or passport.

The scheme is registered by Retirement Benefit Authority (RBA) for the purpose of regulation and Kenya Revenue Authority (KRA) in case of tax. The Scheme enjoys tax exemption status by KRA and is not taxable at the point of exit unless it exceeds the maximum exception taxable limit of Kshs 20,000 per month, up to Kshs 240,000 per year.

In case, a member continue saving up to the age of 65years, no tax is levied on the saving. The member enjoys 100% exemption after the age of 65 years of age.

Mbao Pension Plan is managed by service provided. Kenya Commercial Bank (KCB) is the legal owner of the scheme as the corporate Fund Trustee. Co-Trust Investment Services Limited a subsidiary of Co-operative Bank is the Fund Manager, Eagle Africa Insurance Brokers is the Fund Administrator and Safaricom & Airtel are the money transfer platforms.


  1. National ID or Passport
  2. The mobile phone registered with CCK

The minimum savings is Kshs 20/= per day, Kshs 500/= per month and Kshs 6,000/= per year. There is no maximum savings, one can save as much as one can afford.

Savings can be done daily, weekly, fortnightly, monthly, quarterly, seasonally, or yearly it upon the member to decide. The member determines how much he/she wants to save.

In case of employees, their monthly contribution depends on their pensionable portion per month in Tier 2 of the New NSSF Bill 2003 in case an employee opts out of NSSF.

  1. No penalty in case of default. Members are encouraged to save promptly.
  2. Immediately, savings should as soon as one fills the application form.
  3. Mbao does not give a mortgage. But a member can use their retirement savings to secure a   mortgage up to 60%

The benefits can be accessible after a minimum of 3years, 10 years, 15 years, 30 yrs etc depending on the age of a member at entry.

The savings are regularly invested by the fund Manager (Co-Trust Investment Services Limited) and income earned as interest is declared during the AGM held annually at the end each accounting period i.e. after 31st December each year. We held our first AGM in June 2013.

The members nominated beneficiaries will be paid the benefits that were due to the member at the time of death together with the accrued interest. Always the members are advices to indicate contact of their beneficiaries.


 How do I save via M-PESA?

  1. Go to Mpesa menu
  2. Select pay bill
  3. Enter business No 710 710
  4. Enter account number (Your ID number)
  5. Enter the amount you want to save
  6. Enter Mpesa PIN Number and press Ok