Frequently Asked Questions

1. How does my remitted Gratuity earn investment income/return?
  • LAPFUND prudently invests in various assets classes including Government bonds and Treasury bills, Equities, Fixed Deposits and Properties
2. How do you tax the gratuity?
  • One of the benefits of Gratuity conversion is to enjoy the various tax relief.
  • The Gratuity will be taxed on a preferential rate for retirement benefits as opposed to the flat 30%.
3. Why should the assembly remit the Gratuity to LAPFUND??
  • Members gain from the investment income over time. Members will receive annual statements of accounts
  • County assembly gains from LAPFUND excellent track record in administration of retirement benefits, including prompt payment of benefits
  • The responsibility of managing the county assembly gratuity fund will be passed to LAPFUND
  • The County Assembly projects the image of a caring employer by ensuring that MCAs enjoy maximum benefits at the expiry of their term
9. Will my Voluntary and Gratuity be subjected to double taxation?
  • No. There is no taxation on the principal but investment income shall be taxed. (Voluntary)
  • The Gratuity shall be taxed under the preferential graduated scale in a registered retirement benefits scheme.
10. Why is it important for the County Assembly Clerk or the County Secretary to clear MCA or Executive member during exit respectively (Gratuity)?

  • -This is because the employer is remitting on behalf of the member. It is a direct benefit from the employer.

    -Abundance of Caution
11. When is Gratuity Payable?
  • This is payable at the completion of term, resignation, dismissal or death.

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Vision & Mission

Vision: The Preferred Partner in Savings and Retirement Solutions

Mission: To receive, prudently invest and manage members’ savings for prompt payment of benefits for secured retirement.

CORE VALUES:IntegrityCustomer CentricityAccountabilityResponsivenessExcellence

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