There shall be charged and paid out of the funds of the Bank all such sums of money as may from time to time be granted by the Bank by way of pension, gratuity, or other allowance in accordance with these Regulations.

Notwithstanding these Regulations, the Cabinet Secretary may, in relation to a specified class of officers, approve a scheme of retirement provided for payment of pensions, gratuities or other allowance, in these Regulations referred to as an "approved special retirement scheme" and that scheme shall have effect as if the provisions thereof were part of these Regulations.

A gratuity may be granted to a female officer, in accordance with these Regulations, who resigns on or with a view to marriage or is required to retire on account of her marriage, notwithstanding that she is not otherwise eligible under this Regulation for the grant of a pension, gratuity or other allowance.

A pension, gratuity or other allowance may be granted in accordance with these Regulations to an officer on his retirement from any local government service (which the Ministry has determined to be public service for the purpose of these Regulations) to which he has been transferred notwithstanding that there is no provision in such service for the retirement of such officer on pension or gratuity, if the circumstances in which such officer retires are circumstances in which, had he remained in the service of the Bank he would have been eligible for a pension, gratuity or other allowance under these Regulations.

This regulation shall not preclude the payment of a sum of money payable under an approved special retirement scheme otherwise than upon retirement.

No officer shall have an absolute right to compensation for past service or to pension, gratuity or other allowance, nor shall anything in these Regulations affect the liability of an officer to be dismissed according to law.

Where it is established to the satisfaction of the Cabinet Secretary that an officer has been guilty of negligence, irregularity or misconduct, the pension, gratuity or other allowance may be reduced or altogether withheld.

Where an officer’s service is terminated on the ground that, having regard to the conditions of the public service and the usefulness of the officer thereto and all the other circumstances of the case, termination is desirable in the public interest, and a pension;

gratuity or other allowance cannot otherwise be granted to him under the provisions of these Regulations, the Bank may grant such pension, gratuity or other allowance as it thinks just and proper, not exceeding in amount that for which the officer would be eligible if he retired from the public service on medical grounds as provided in regulation 4(1)(e).

Under this regulation the Bank shall not grant a pension, gratuity or other allowance less in amount than that for which the officer is eligible without the concurrence of the Cabinet Secretary.

Subject to paragraph 8(3), an officer may elect to retire on or at any time after attaining the age of fifty years.

The Bank may, with the agreement of an officer, require him to retire from the service of the Bank at any time after he attains the age of fifty years but before he attains the age of fifty-five years.

Except in any case provided for under paragraph (4) or (6), a pension granted to an officer under these Regulations shall not exceed four-fifths of the highest pensionable emoluments drawn by him at any time in the course of his service in the Bank, except that no pension shall be less than sixty pounds per year.

An officer who has been granted a pension in respect of other public service shall not at any time drawn from the funds of the Bank an amount of pension which, when added to the amount of any pension drawn in respect of other public service, exceeds four-fifths of the highest pensionable emoluments drawn by him at any time in the course of his public service.

Where an officer receives in respect of some period of public service, both a pension and a gratuity, the amount of the pension shall be deemed for the purpose of paragraph (2) to be what it would have been if part of it had not been commuted into a gratuity.

In the application of paragraph (2), no regard shall be had to any pension granted in respect of other public service attributable to service which has not been taken into account in determining the amount of the pension payable under these Regulations.

Where the limitation specified by paragraph (2) operations, the amount of the pension to be drawn from the funds of the Bank shall be determined with regard to the amount of any pension or pensions to be drawn in respect of public service.

For the purpose of this regulation an additional pension granted in respect of injury shall not be taken into account; but where the officer is granted such an additional pension under these Regulations, the amount of that additional pension together with the remainder of his pension shall not exceed the highest pensionable emoluments drawn by him at any time in the course of his public service.

The Board may from time to time increase the amount payable on any pension awarded under these Regulations and may make such rules as may be necessary to regulate such increase.

Every pension granted under these Regulations shall be subject to the condition that unless or until the officer attains the age of fifty years, he may, if physically fit for service, be called upon by the Bank to accept an office in the service of the Bank not less in value than the office which he held at the date of his retirement; and where a pensioner so called upon declines to accept such office, the payment of his pension may be suspended until he has attained the age of fifty years.

This Regulation shall not apply to any officer who is required to retire under the provisions of an approved special retirement scheme.

Where an officer to whom a pension has been granted under these Regulations is appointed to another pensionable office in the public service, the payment of the whole or any part of his pension may with his consent and if the Bank thinks fit, be suspended during the period of his re-employment.

In computing the pension payable on final retirement from the public service of an officer whose pension has been suspended under paragraph (1), his service prior to the re- employment shall be taken into account but all the moneys previously paid to him by way of pension or gratuity shall be deducted from either the pension or gratuity assessed and payable at the date of his final retirement.

Where a person to whom a pension or other allowance has been granted under these Regulations, otherwise than under regulation 14 or 15, becomes a director or an employee of a company, the principal part of whose business is in any way directly concerned with the Bank without the prior permission in writing of the Board, the pension or allowance shall cease if the Board so directs.

The Board may, on being satisfied that the person, in respect of whose pension or other allowance a direction under paragraph (1) has been given, has ceased to be a director or an employee of that company, given directions for the restoration of the pension or allowance, with retrospective effect if it thinks fit, to such a date as it may specify; and the pension or other allowance shall be restored accordingly.

Where an officer holding a pensionable office who is not on probation or on agreement, or an officer holding a non-pensionable office to which he has been transferred from a pensionable office in which he has been confirmed, dies while in the service of the Bank, the Bank may grant to his legal representative a gratuity of an amount not exceeding twice the amount of his annual pensionable emoluments or his commuted pension gratuity, if any, whichever is the greater.

Where an officer dies after retirement from the service of the Bank having been granted, or having been eligible for a pension under these Regulations, and the sums paid or payable to him between the date of his retirement and the date of his death on account of that pension, or other allowance in respect of any public service granted under regulation 35, are less in total than twice the amount of his annual pensionable emoluments or the commuted pension gratuity for which he would have been eligible under paragraph (1) had he died on the date immediately preceding his retirement, whichever is the greater, the Bank may grant a gratuity equal to the deficiency to his personal legal representative.

If a widow to whom a dependant’s pension has been granted under paragraph (1) dies or otherwise ceases to be entitled to the dependant’s pension, the child or children who are entitled, in accordance with the terms and conditions set out in paragraph (3), to a dependant’s pension, shall be entitled in accordance with those terms and conditions to receive the dependant’s pension for the remainder of the period of five years from the date of the officer’s death which is still outstanding at the date on which the widow dies or otherwise ceases to be entitled to the dependant’s pension.

No dependant’s pension or share thereof shall be payable in respect of any period after the fifth anniversary of an officer’s death.

A pension shall not be payable under this regulation at any time in respect of more than six children, and where there are more than six children in respect of whom, but for this paragraph, a pension would be payable, then the amount payable in respect of the six children shall be divided equally among all the children during the period in which there are more than six children of pensionable age.

In the case of an officer not holding a pensionable office, in this regulation

"pensionable emoluments" means the emoluments enjoyed by him which would have been pensionable emoluments if the office held by him had been a pensionable office.

In the case of the death of an officer whose dependants are entitled to compensation under the Work Injury Benefits (Cap. 236) or any other law relating to workmen’s compensation, the Bank may take such compensation into account to such an extent as it thinks fit in fixing the amount of pension to be paid under this regulation.

Subject to these Regulations, an officer holding a pensionable office in the service of the Bank for ten or more years may be granted on retirement a pension at the annual rate of one five-hundredth of his pensionable emoluments for each complete month of his pensionable service.

Notwithstanding paragraph (1), it shall be lawful to grant any officer who retires in accordance with the terms of an approved special retirement scheme such addition to the annual rate provided for in that paragraph as may be provided by such scheme.

Where the other public service of an officer to whom this Part applies has not included service in other public service and his aggregate service would have qualified him, had it been wholly in the service of the Bank, for a pension under these Regulations, he may, subject to regulations 4(1)(b), upon his retirement from the public service in circumstances in which he is permitted by the law or regulations of the service in which he is last employed to retire on a pension or gratuity, be granted, in respect of his service in the Bank, a pension at the annual rate of one-five-hundredth of his pensionable emoluments for each complete month of his pensionable service in the Bank or, in the case of a pension beginning on or after 1st January, 1978, at the annual rate of sixty pounds, whichever is the greater.

Where the officer is not in the service of the Bank at the time of his retirement in the circumstances referred to in paragraph (1), his pensionable emoluments for the purpose of that paragraph shall be those which would have been taken for the purpose of computing his pension if he had retired from the public service and had been granted a pension at the date of his last transfer from the service of the Bank.

Notwithstanding this regulation, it shall be lawful to grant to any officer who retires in accordance with terms of an approved special retirement scheme such addition to the annual rate provided for in this regulation as may be provided by such scheme.

Subject to these Regulations, qualifying service shall be the inclusive period between the date on which an officer begins to draw a salary in respect of public service and the date of this leaving the public service, without deduction of any period during which he has been absent on leave.

No period which is not qualifying service by virtue of paragraph (1) shall be taken into account as pensionable service.

No period during which an officer was not in public service shall be taken into account either as qualifying service or as pensionble service.

Except as otherwise provided in these Regulations, only continuous service shall be taken into account as qualifying service or as pensionable service, but any break in service caused by temporary suspension of employment not arising from misconduct (the gravity of which, in the opinion of the Bank, would warrant summary dismissal) or voluntary resignation shall be disregarded for the purpose of this paragraph.

For the purpose of computing the amount of pension or gratuity of an officer who retires in accordance with an approved special retirement scheme, the pensionable emoluments provided for that scheme for the computation of such pension or gratuity shall taken.

Subject to this regulation, only service in a pensionable office shall be taken into account as pensionable service.

Subject to paragraph (4), where a period of continuous service is otherwise than in a pensionable office and the officer is confirmed therein, one-half of that period, or such greater portion, or the whole thereof, as the Bank may determine, may be taken into account.

Where an officer was a contributor under the provisions of the East African External Telecommunications Company Limited Retirement Benefit and Life Assurance Plan, Kenya External Telecommunications Company Limited Retirement Benefit and Life Assurance Plan, East African Posts and Telecommunications Administration Provident Fund Scheme, East African Post and Telecommunications Corporation Provident Fund Scheme or Kenya Posts and Telecommunications Corporation Provident Fund Regulations and has subsequently been confirmed in a pensionable office, the whole period during which he was a contributor, irrespective of his age during that period, shall be taken into account provided that the officer shall surrender all claims to the amount of money then credited or provisionally credited to him in the Fund or life assurance plan and that amount of money shall be paid into the Bank’s funds.

Where a period of continuous service as a trainee, officer in training or apprentice is immediately followed by service in a pensionable office and the officer is confirmed therein, the whole of that period of continuous service shall be taken into account.

Any break in service which may be disregarded under regulation 23 may likewise be disregarded in determining for the purpose of paragraph (2), (3) or (4) whether one period of service immediately follows another period of service.

Where an officer has been transferred from a pensionable office in which he has been confirmed to an office other than a pensionable office and subsequently retires either from a pensionable office or from that other office, his service in that other office may, with the approval of the Bank, be taken into account as though it were service in the pensionable office which he held immediately prior to the transfer, and, except where the transfer was the result of a reduction in rank for a disciplinary offence, at the pensionable emoluments which were payable to him at the date of transfer:

Provided that where the annual pensionable emoluments of the pensionable office from which he has been transferred are not taken into account by reason of his having been reduced in rank for a disciplinary offence, then the emoluments in that other office which would have been pensionable emoluments had that office been a pensionable office shall be taken into account provided that the amount in that other office does not exceed the annual pensionable emoluments of the office from which he has been transferred.

Where a period of service in a non-pensionable office is taken into account under this regulation, the officer shall during that period be deemed for the purposes of regulation 20 or 30 to be holding a pensionable office, and where that period is taken into account under paragraph (6), to have been confirmed therein.

An officer holding a pensionable office in which he has not been confirmed or a non- pensionable office and who is injured as described in paragraph (1) while in the service of the Bank may be granted, on retirement, a pension of the same amount as the additional pension which might be granted to him under paragraph (1) if his office were a pensionable office and he had been confirmed therein, but regulation 31 shall not apply to a pension granted under this paragraph.

In the case an officer not holding a pensionable office, in this regulation

"pensionable emoluments" means the emoluments enjoyed by him which would have been pensionable emoluments if the office held by him had been a pensionable office.

Neither paragraph (1)(ii) nor paragraph (2) shall apply in the case of an officer who, in consequence of his injury, is entitled to compensation under the Work Injury Benefits Act (Cap. 236) or any other law relating to workmen’s compensation.

An officer to whom a pension has been granted under these Regulations may, at his option, exercisable (and if already exercised, revocable) not later than the day immediately preceding the date of his retirement from the public service or at such later date as the Bank may in any special case approve, be paid in lieu of that pension, a pension at the rate of three-fourths or any greater fraction of that pension together with a gratuity equal to fifteen times the amount of the reduction so made in the pension.

In the application of this regulation to cases where the limitation prescribed by regulation 8(2) operates, the words in paragraph (1) "that pension" shall mean the amount of pension which the officer would have drawn from the funds of the Bank if he had not exercised his option under this regulation.

An officer to whom a pension not exceeding sixty pounds per year before the exercise of the option under paragraph (1) has been granted under these Regulations may, at his option exercisable before the first payment of pension has been made to him, be paid in lieu of that pension a gratuity provided for in that scheme shall be subject to such modification as is provided for in the scheme.

An officer who has been granted a gratuity under paragraph(1), or who would have been granted a gratuity under paragraph (1) but for proviso (ii) or (iii) to that paragraph, and who retires on or after attaining the age of fifty-five years having been in the public service for not less than twenty years and whose salary on retirement on or after 1st May, 1978 is not more than the maximum salary payable for the time to officers serving in the semi- skilled Service Group or such other amount as the Cabinet Secretary may declare for the purposes of this paragraph, may be granted an annual allowance which shall be in addition to any gratuity under paragraph (1) of sixty pounds or the minimum pension for the time being payable under these regulations or any regulations increasing pensions payable under these Regulations or, if he has had other public service, an annual allowance as bearers the same proportion to annual allowance stipulated in this paragraph as his service under the Bank bears to his total public service.

Where an officer holding a non-pensionable office and having not less than seven years’ public service dies while in the service of the Bank and his dependants are not otherwise eligible for any gratuity under these Regulations, the Bank may grant to the dependants of such officer a gratuity of an amount not exceeding the amount which might have been granted to the officer under paragraph (1) (a)(i) had he retired in the circumstances set out therein at the date of his death.