Shaping Retirement in Kisumu: LAPFUND

Shaping Retirement in Kisumu: LAPFUND

LAPFUND is a defined contribution scheme that at present enjoys a membership of over 52,000 members with billions worth of assets spread across securities, equities and deposits, and property. Through savings and investing into projects such as real estate, this acts as a reservoir of resources; a secure retirement fund.

Contribution Structure

The fund is designed to enable contributors enhance their retirement package by making additional contributions such as 12% of Gross Salary for employees and 15% of Gross Salary for an employer. The interesting thing about LAPFUND is that people in the informal sector such as Jua Kali workers and Boda boda operators are able to contribute a minimum of Ksh1,000 monthly or Ksh12,000 annually for a minimum of 3 years.

Disbursements are then made as per applicant’s qualification and this forms of Withdrawal Benefits, Retirement Benefits, Funeral Grant, Survivors’ Benefit, Life Assurance or Pension Backed Mortgage which means your savings are invested into income generating projects.

Retirement Benefits

Members are eligible for these benefits when they attain the mandatory retirement age of 60 years, or early retirement age of 50 years.

  • Lump Sum Benefit – A member leaving LAPFUND may elect to receive a one-off payment equivalent to the total fund value in his or her account consisting of member contribution, employer contribution, and interest accrued over the period of membership.
  • Income Draw-down – A member leaving LAPFUND may elect to receive his or her benefit through an income drawdown. A member may select a specific regular amount or a percentage of the fund value in his or her account, this may be received monthly, quarterly or bi-annually in a year for a period of not less than 10 years.


LAPFUND AMAL is the Shariáh compliant window of LAPFUND; therefore, the window offers its product and services in accordance with Retirement Benefit Act and in accordance with Shariáh principles. As an agent LAPFUND receives a fee as compensation for its services. Any returns realized from the investment of the Funds remain the properties of its members.

Pension Backed Mortgage

Members can use their accumulated benefits (up to 60%) as collateral to secure a mortgage loan to own a home while at the same time saving towards a secured retirement.

Western Kenya Office: Al-Imran Plaza, 2nd Floor, Oginga Odinga Street, Kisumu.