Point in Time
Act No: CAP. 493B
Act Title: KENYA POST OFFICE SAVINGS BANK
[ Date of commencement: 1st January, 1978. ]
[ Date of assent: 30th December, 1977. ]
1.
Short title

This Act may be cited as the Kenya Post Office Savings Bank Act.

2.
Interpretation

In this Act—

“Bank” means the Kenya Post Office Savings Bank established under section 3;

“Board” means the Board of Directors appointed under section 5;

“Corporation” means the Kenya Posts and Telecommunications Corporation established under the Kenya Posts and Telecommunications Corporation Act (Cap. 411);

“expenses” has the meaning assigned to it in section 10;

“former Bank” means the Post Office Savings Bank established under the Post Office Savings Bank Act (Cap. 501) (1962) (now repealed);

“revenue” means income of the Bank but does not include moneys received on deposit.

3.
Establishment of the Bank and vesting of assets and liabilities
(1)

There is hereby established a savings bank to be known as the Kenya Post Office Savings Bank which shall replace the former Bank and which shall be a body corporate with perpetual succession and a common seal and shall have power to sue and be sued in its corporate name and to acquire, hold and dispose of movable and immovable property for the purposes of the Bank.

(2)

The assets and liabilities of the former Bank subsisting at the commencement of this Act shall on that day be vested in the Bank.

(3)

Savings accounts vested in the Bank under subsection (2) shall be maintained by the Bank subject to any rules made under section 15.

5.
Appointment of Board of Directors
(1)

The Bank shall be under the control of a Board of Directors which shall, subject to the direction of the Minister, take such steps as may be necessary and desirable for the proper management of the Bank and for the promotion of the objects and purposes of this Act.

(2)

The Board shall consist of seven members as follows—

(a)

a chairman who shall be appointed by the Minister;

(b)

the Managing Director of the Bank;

(c)

the Permanent Secretary to the Treasury or a public officer employed by the Treasury appointed by the Minister as alternates;

(d)

the Managing Director of the Corporation or an officer of the Corporation nominated by him as alternates;

(e)

three members appointed by the Minister who shall not be employees of the Government.

(3)

A quorum for any meeting of the Board shall be four:

Provided that no meeting of the Board shall be held or continued notwithstanding that there is a quorum unless either the Permanent Secretary to the Treasury or the public officer appointed under paragraph (c) of subsection (2) is present.

6.
Appointment of Managing Director
(1)

The Minister shall appoint a Managing Director who shall be responsible for the implementation of the policy and savings programmes of the Bank as laid down by the Board from time to time.

(2)

Deleted by Act No. 12 of 1984, Sch.

(3)

The Managing Director of the Bank may with the consent of the Board employ such persons as may be necessary for the execution of this Act.

(4)

Employees of the Bank shall be engaged on such terms of service as the Board and the Treasury may approve:

Provided that the Bank may arrange with the Corporation that employees of the Corporation shall undertake duties on behalf of the Bank and that the Corporation shall be reimbursed in accordance with section 10.

7.
Deposits and repayments

Deposits of money to be paid into the Bank whether paid into a savings account or in respect of any other savings facility issued by the Bank from time to time shall be received and repaid under such conditions as may be prescribed in accordance with rules made by the Board under section 15.

9.
Interest payable

Interest shall be payable on savings deposits and on such other savings instruments as may be issued by the Bank from time to time in accordance with rules made by the Board under section 15.

9A.
Exemption from lottery licences

Nothing in the Betting, Lotteries and Gaming Act (Cap. 131) shall be taken to apply to any instrument issued under this Act by reason of any use or proposed use of chance to select particular instruments for special benefits, if the terms of the issue provide that the amount subscribed is to be repayable in full in the case of all the instruments.

10.
Expenses
(1)

All expenses incurred in the execution of this Act shall be met from the revenue of the Bank.

(2)

For the purposes of this Act, “expenses” means the cost of any work or service done by or in connection with the Bank, including such sum on account of administrative and other overhead expenses incurred by the Corporation as may, with the approval of the Permanent Secretary to the Treasury, be reasonably assigned to that work or service.

12.
Accounts
(1)

Annual accounts of the revenue and expenditure of the Bank for each year ending on the 31st December, together with a statement of the assets and liabilities of the Bank, shall, after being audited and certified by the Auditor-General (Corporations), be laid by the Minister before the National Assembly as soon as possible after the close of each year and shall thereafter without delay be published in the Gazette.

(2)

The annual accounts shall include a statement of monies received and repaid by the Bank separately for each savings facility, including a statement of the amount of interest credited to each facility.

13.
Surplus and deficits
(1)

Without prejudice to paragraph (f) of section 4, if in any year the revenue of the Bank is insufficient to defray the interest due to depositors and all expenses under this Act, such deficiency shall be charged upon and paid out of the Consolidated Fund.

(2)

If in any year the revenue of the Bank shall be more than sufficient to defray the interest due to depositors and all expenses under this Act, then the Minister may direct the transfer of the surplus or any portion thereof to the Consolidated Fund:

Provided that no such transfer shall be made unless the assets of the Bank will thereafter exceed the liabilities by not less than fifteen per centum of the liabilities to depositors.

16.
Secrecy
(1)

No person appointed to carry this Act into effect shall disclose the name of any depositor or the amount which may have been deposited or withdrawn by any depositor except in due course of law or to such person or persons as may be appointed to assist in carrying this Act into operation.

(2)

Any person who contravenes the provisions of this section shall be guilty of an offence and liable to a fine not exceeding five thousand shillings.

17.
Repeal of Cap. 501

The Post Office Savings Act (Cap. 501) is hereby repealed.