Takaful Umbrella Fund

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Product Overview

Takaful Umbrella Fund is the first Shariah-compliant retirement benefits scheme in East and Central Africa. It is a retirement benefits fund that pools together retirement benefits for small, medium or large organizations and institutions with a purpose of coming up with a practical, cost-effective, Shariah-compliant and professionally managed retirement benefits scheme for the members. This allows the participating employers to focus on their core business.

Benefits to Employers

Shariah Compliant

The Trustees of the scheme have established an investment policy that ensures that the scheme invests in acceptable ways that adhere to Shariah Principles of Commercial Transactions while enabling the employers and employees to save towards retirement.

Cost Effective

Costs for operating the Fund will be shared among participating employers therefore making the Fund operationally cost efficient.

Enhanced Governance

The Fund is managed by professional and competent Trustees at an affordable cost.

Easy to set up

Setting up and managing the routine activities of the Fund will be the least of the employer’s concern giving him/her ample time to concentrate on his/her core business.

Employee Loyalty

Setting up a retirement fund for and on behalf of your employees is partnering up to assist them to save towards their retirement. This is likely to promote hard work and loyalty. The absence of an established scheme makes an employer less attractive rendering the company incapable of attracting a talented workforce.

No penalties on withdrawal

No penalties will be incurred should an employee decide to withdraw from the fund however a notice period of 30 days will be required to facilitate processing of the benefits.

Tax relief

Contributions remitted to the Fund are tax allowable up to Kshs 20,000 per month per member. Further, on accessing your benefits, you are allowed a tax-free lump sum of Kshs 60,000 for every year of Scheme membership subject to a maximum of Kshs 600,000.

Benefits to Employees

Membership Eligibility

To join the Fund the Employer needs to ensure that:

Employees need to ensure that they are:


The Fund operates as a Defined Contributions (DC) Scheme with the employee contributing a percentage of his/her basic salary into the fund and the employer adding onto it with an equal, less than or higher percentage.

Contributions will be remitted to the custodian via a Standing Order, Debit Order, Electronic Funds Transfer (EFT), Cash Deposit or Cheque by the 10th day of the following month to which the contributions relate.

NOTE: All contribution payments should be addressed to the Custodian

Benefits Payment

Member benefits can be claimed under any of the following circumstances:

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