SCAC Guidelines.pdf

OFFICE OFFI CE OF THE TH E PRESI PRESI DENT PERMANENT PERMANENT SECRETARY , SECRETARY TO THE CABINET AND HEAD OF OF THE T HE PUBL PUBL I C SERVI SERVI CE Tele Teleg graphic Add Address: “Rais” is” Tele Telep phone: Nairo irobi 227411 When replying ying pleasequote Ref. Ref. No No. OP/CA OP/C A B.9 B.9/2 /21 1/2A /2A /LI /L I I /43 /43 and date

P.O Box 6234 62345-002 5-00200 NAIROBI

23rd November ovember,, 2004 2004

The Attorney General All Permanent Secretaries All Accounting Officers The Registrar, High Court of Kenya RE: GUIDELINES ON TERMS AND CONDITIONS OF SERVICE FOR STATE CORPORATIONS CHIEF EXECUTIVE OFFICERS CHAIRMEN AND BOARD MEMBERS MANAGEMENT STAFF UNIONISABLE STAFF Legal Basis 1. These guidelines are released after full consultation with the State Corporations Advisory Committee in accordance with the provisions of Sections 5(3), 10(1), and 10(2) of the State Corporations Act, Cap.446. of the Laws of Kenya.

Preamble 2. The circular letter releases to you Guidelines on the terms and conditions of service for Chairmen, Members of the Board and Chief Executive Officers of State Corporations. The Guidelines also aim to empower State Corporation Boards to recruit and appoint management staff taking into account the overall personnel needs provided for in their approved budgets, skills and experience required to run the Corporations’ business effectively and efficiently. 3. The Guidelines are also a clear indication that State Corporations have no option but to embrace modem business management practices. Each Corporation is expected to have a corporate strategy with clear goals, a set of values and objectives and a mission, the attainment of which will depend on the quality of personnel running the Corporation’s business. 4. A key objective of the Government is to ensure effective and efficient management and administration of the State Corporations’ payrolls. In this respect, the Guidelines aim to introduce an enabling environment where pay related decisions will be taken by the appointing authorities with a clear emphasis on performance, to be spelt out in the letters of appointment. 5. It is expected that these Guidelines are to be implemented on the basis that employees will earn the pay they get, and there shall be less dependence on the Exchequer. Categorization 6. For the purpose of these Guidelines State Corporations have been classified in eight broad functional categories based on mandate and core functions. The eight categories are Financial; Commercial/Manufacturing; Regulatory; Public Universities; Training and Research; Service; Regional Development Authorities; and, Tertiary Education/Training

State Corporations. Details of the Functional Categorization are in Annex I.

7. For purpose of Chief Executive Officers’ remuneration each of the eight functional categories has been divided into sub-categories based on nature, scope and size of operations. New State Corporations 8. When the need for a new State Corporation has has been established as provided for under Section 27(1) (b) of the State Corporations Act, Cap.446, the categorization of such a Corporation will be referred to the State Corporation Advisory Committee for its advice on a case by case basis. Chief Executive Officers’ Terms and Conditions of Service 9. The salary bands given in Annex II of this circular are guidelines and take into account that State Corporations differ in nature, size and scope of their business. They also take cognizance of the fact that a number of Chief Executive Officers could be seconded from the mainstream civil service where their pensions, gratuities and other terminal benefits are pegged on the Basic Salary as opposed to the private sector practice where there is one consolidated pay. Movement from the current pay points to a new pay point for individuals within the various categories will be negotiated taking into account both merit and ability of the organization to pay. Entry Point for Chief Executive Officers 10. Entry points for Chief Executive Officers, even for those within the same category may naturally differ depending on their professional background, skills and experience. experience. In determining the entry points, Annex II, supplemented by Annexes (B) are to be used by Annexes Ill (A), and III (B) as negotiating tools by the appointing authorities specified by the enabling legislation. Board Chairmen and Directors 11. A Chairman of a State Corporation is entitled to an Honorarium in addition to a sitting allowance. Board Members are entitled to a sitting allowance. Both Chairmen and Board Members are entitled to

other benefits which are specified in Annex IV to this letter. You are expected to familiarize yourselves with the package and ensure that State Corporations adhere to the guidelines, taking into account ability to pay. Terms and Conditions of Service for Management Staff 12. Each State Corporation has its own management organization structure with a matching head count budget to support the business. Under these Guidelines, the Board and its Chief Executive are empowered to determine both the structure and the pay levels. To ensure that the structure is manned by staff with the relevant skills and experience, recruitment should be competitive when filling any management position, whether internally or externally. Pay levels will depend, inter alia, on job evaluation and the Corporations’ salary scales as the starting point. As each Corporation enters the phase of performance based compensation, it is expected that agreed performance measures and targets will be introduced within each state corporation, with matching rewards for exceptional performance. Sample Letters of Appointment (a)

The Chairman

(A) is a sample of Letter of Appointment for the 13. Annex V (A) Chairman of a State Corporation for use by the appointing authorities. It spells out his duties and responsibilities taking into account the principle of separation of powers. He is the focal point between the shareholders and management and together with the Board he is accountable to the shareholders for the Corporation’s overall performance. This letter sets out the relationship between the Board as policy maker and management as the implementing tool. (b)

Chief Executive Officer

14. At Annex V (B) please find a sample of a Letter of Appointment for the Chief Executive Officer (CEO) of a State Corporation. Hitherto management letters of appointment have tended to be casual and

often one-sided. The sample letter clearly sets out the duties and responsibilities of a CEO and introduces the concept of performance based remuneration. Boards of Directors are asked to adopt it as it ties up well with the recently introduced practice of performance contracting. Competitive Sourcing of Chief Executives 15. In order to attract persons of sound sound background with with the relevant skills and experience which each State Corporation requires to manage its business efficiently and effectively, Boards are advised that henceforth new appointments of Chief Executive Officers should be competitive. The recruitment process should involve a careful preparation of a Job Description and Job Requirements which include job and person specifications. The short listing and interview process should be transparent based on a verifiable Recruitment Procedure approved by the Board. 16. The three best best candidates will then be considered for final decision by the appointing authority taking into account interview scoring sheets and the interview panel’s recommendations. Unionisable Staff 17. State Corporations which have Recognition Agreements with Trade Unions are responsible for the negotiations of Collective Bargaining Agreements. The position of the Government is that it is the responsibility of State Corporations to hire competitively to fill the vacancies in their

approved manpower budgets and to agree on pay packages with the Unions based on labour productivity and ability to pay. Effective Dates 18. Where a Chief Executive Officer has been been hired prior to the date of this circular but is yet to be given his terms of service, a contract should be negotiated within these Guidelines and the effective date

should be determined by the appointing authority taking into account ability to pay. 19. If there is need need to revise an existing contract of a Chief Executive Officer whose terms are below the minimum set in these Guidelines the date of implementation of such revised contract will be determined by the appointing authority but in any case not to be backdated earlier than 1st July, 2004. 20. Existing contracts of Chief Executive Officers, Chairmen and Directors whose terms are above the limits set in these Guidelines may be allowed to run their course but will be renegotiated if the appointing authority intends to renew the contracts. All new contracts will be negotiated in line with the Guidelines. 21. If there is need to revise existing terms and conditions of service for Chairmen and Board Members in line with these Guidelines, such a revision should be determined by the appointing authority and made effective from a date not earlier than 1st July, 2004. Conclusion 22. With the release of these Guidelines there will be no compelling reason for appointing authorities to refer remuneration issues for Chairmen, Board Members, Chief Executive Officers and staff of State Corporations to the State Corporations Advisory Committee other than to seek clarification on aspects of the contents of the Guidelines.

AMB. FRANCIS K. MUTHAURA, MBS PERMANENT SECRETARY/SECRETARY TO THE CABINET AND HEAD OF THE PUBLIC SERVICE

c.c

The Controller and Auditor-General Kencom House NAIROBI. The Secretary State Corporations Advisory Committee KICC NAIROBI. The Secretary Permanent Public Service Remuneration Review Board NAIROBI. Inspector-General (Corporations) KICC NAIROBI.

ANNEX ANNEX I FUNCTI FUNCTI ONAL ONAL CATEGORIZATI CATE GORIZATI ON OF STA STATE TE CORPORAT CORPORATII ONS ONS PC 8 - FINAN FI NANCI CI AL CORPORAT CORPORATII ONS ONS STAT E CORPORATI CORPORATI ON 1. A gricultu gricultura rall FinanceCorporation Corporation 2. Consol onsoliidate dated Bank 3. Deposi Depositt Prote Protection ction Fund Board oard 4. I ndustri ndustrial al and Comm Commercial rcial Deve Development Corporation 5. I ndustri ndustrial al Developm velopment Bank ank 6. K enya I ndustri ndustria al Estates tes 7. K enya Nationa tional A ssura ssurance nce Co. (2001) (2001) 8. K enya Post Off Office Savi Savings ngs Bank 9. K enya Re-I nsuran nsurance ce Corporati orporation on 10. K enya Revenue venueA uthori uthority ty 11. K enya Roads oads Board oard 12. K enya Tourist Development Corporati Corporation on 13. National tional Bank of K enya 14. Nationa tional Hospi ospital tal I nsuran nsurance ce Fund 15. Nationa tional Socia Social Securi Security ty Fund

PARENT MI NISTRY NISTRY A gricultu griculture re Finance nance Finance nance Tra Trade and Ind Industry Tradeand and I ndustry ndustry Trade rade and I ndustry ndustry Finance Finance nce Finance nance Finance nance Roads oads and Publi Public Works Works Tourism and Wil Wildlif dli fe Finance Heal Health L abour abour and Human Resource source Development ent

PC 7 - COMM ERCI AL /M ANUFACT ANUFACTURING URING CORPORAT CORPORATII ONS ONS STAT E CORPORATI CORPORATI ON 1. A gro-Che gro-Chemical cals and Food Company 2. Chemelil Sugar Company 3. East ast A frican rican Portlan ortland d Cement ent Company pany 4. Gil Gi lgil gil Telecommunications I ndust ndustri rie es 5. Jo J omo K enyatta Fou Foundation ion 6. K enya A irports rports A utho uthori rity ty 7. K enya Broadca roadcasting sting Corporati orporation on 8. K enya Electrici ctricity ty Generati rating Company pany 9. K enya L iteratu terature re Burea ureau 10. K enya Medical Suppl Supplies A gency 11. K enya Ordina Ordinance nceFactorie ctories Corporati orporation on

PARENT MI NISTRY NISTRY A gricul griculture ture A gricul griculture ture Tradeand and I ndustry ndustry I nform nformation tion and and Communi unicati cations ons Edu Education ion, Scien ience and Tec Technolog logy Trans ransport port I nformation tion and and Communi unicati cations ons Energy Educa ducati tion, on, Scie Science and Technol chnology ogy Health Off Office of thePre Preside sident (DOD (DOD))

12. K enya Pipe Pi peline Company pany 13. K enya Ports A uthori uthority ty 14. K enya Power and L ighti ghting ng Company pany 15. K enya Railways Corporati orporation on 16. K enya Saf Safari L odge odges and Hotel Hotels 17. K enya Seed Company L imited ted 18. K enya Wine Wi ne A gencies 19. K enyatta nyatta I nternati rnationa onal Conference onference Center 20. Nationa tional Cereals and Produ Produce ce Board oard 21. Nationa tional Housi ousing Corporati orporation on 22. National tional Oil Oil Corporation Corporation of K enya 23. National Water Conservation and Pipeline Corporation 24. Numerica ricall Machining chining Complex 25. Nzoia zoia Sugar Company 26. Postal Postal Corporati orporation on of K enya 27. Pyre Pyrethrum thrum Board oard of K enya 28. School Equi quipment Production Production Unit nit 29. South Nyanza yanza Sugar Company pany 30. Telk Telko om Ken Kenya Limit Limite ed 31. University of Nairobi Enterprises and Servi Service ces s Li L imited

Energy Transpo ransport rt Energy Transp ransport ort Touri ourism smand Wil Wi ldlif dli fe A griculture griculture Trade rade and I ndustry ndustry Tourism ourismand and Wil Wi ldli dlife A griculture griculture L ands, nds, Settl Settlement and and Housi ousing Energy Water and and Irri Irriga gation tion Trade rade and and I ndust ndustry ry A griculture griculture I nformation tion and and Communi unicati cations ons A griculture griculture Educa ducati tion, on, Scie Science and Technol chnology ogy A gricul griculture ture Info Inforrmation ion and Com Communica ication ions Education, Science and Technology

PC 6 - REGULATORY REGUL ATORY CORPORATI ONS ONS STAT E CORPORATI CORPORATI ON 1. Capi Capital tal Markets rkets Authority uthority 2. Cateri tering ng Training raining and Tourism ourismDev. Le L evy Tru Trustees 3. Coff Coffee Board oard of K enya 4. Commission for Highe gher Educa ducation tion 5. Communications unications Commission ssion of K enya enya 6. Counci Council for L egal Educa ducation tion 7. Electrici ctricity ty Regul Regulatory Board oard 8. Export Processi Processing Zones Zones A uthori uthority ty 9. Export Promoti Promotion Counci ouncill 10. Horticu Horticulltura turall Crops Development A uthority uthority 11. I nvestm nvestment ent Prom Promotion otion Center nter 12. K enya nya Civil Ci vil A viati viation Autho uthori rity ty 13. K enya Bureau of Standards 14. K enya Dairy Dairy Board oard 15. K enya I ndustri ndustria al Prope Property I nsti nstitute 16. K enya Pla Pl ant Health I nspe nspectorate ctorate Service Services s 17. K enya Sisa Sisal Board oard 18. K enya Suga Sugar Board oard

PARENT MI NISTRY NISTRY Finance Tou Tourism ism and Wild Wildlife A gricultu griculture re Educa ducati tion, on, Scie Science and Technol chnology ogy I nform nformation ation and and Communications unications J ustice ustice and Consti Constitutiona tutionall A ffairs Energy Trade rade and and I ndust ndustry ry Trade rade and I ndust ndustry ry A gricultu griculture re Trade and and I ndustry ndustry Trans ranspo port rt Tradeand and I ndustry ndustry L ivestoc vestock k and Fishe sherie ries Development Trade rade and I ndustry ndustry A griculture griculture A gricultu griculture re A gricultu griculture re

19. Maritim ritime e A utho uthori rity ty 20. National Environm nvironment ent Man M anag agem ement Authority 21. National tional I rriga rrigation Board oard 22. National Tea Zones Development Authority 23. NGO Co-ordina Co-ordination tion Bureau 24. Retire tirem ment Benefit Authori uthority ty 25. Tea Tea Boa Board of K enya 26. Water Service Services s Regulatory Board oard

Trans ransport port Environment and Natural Resources Wate Water and I rriga rrigation Agriculture Off Office of the the V ice Presi President/H nt/Hom ome Affairs Finance Agrricu Ag icultu lture Water and I rriga rri gati tion on

PC 5 – PUBLI PUBLI C UNI UNI VERSI VERSI TI ES STAT E CORPORATI CORPORATI ON 1. Egerton Unive niversi rsity ty 2. J omo K enyatta Univ Unive ersity ity of Ag Agrricu icultu lture and Technology 3. K enyatta nyatta Unive niversity rsity 4. Maseno Unive niversi rsity ty 5. Moi Unive niversi rsity ty 6. Unive niversi rsity ty of Nairobi

PARENT MI NISTRY NISTRY Educa ducati tion, on, Scie Scienceand and Technol chnology ogy Educat ducatiion, Sci Scie ence and Te Technol chnology ogy Educa ducati tion, on, Scie Science and and Technol chnology ogy Educa ducati tion, on, Scie Scienceand and Technol chnology ogy Educat ducatiion, Scie Scienceand and Technol chnology ogy Educa ducati tion, on, Scie Science and Technol chnology ogy

PC 4 - TRAI TR AI NING AND AND RESEARCH CORPORATI CORPORAT I ONS STAT E CORPORATI CORPORATI ON 1. Coff offee Research Founda oundati tion on 2. K enya A gricultu gricultura rall Rese Research I nsti nstitu tute te 3. K enya Forestry Research search I nstitute nstitute 4. K enya I ndustri ndustrial al Rese esearch and and Developm velopment I nstitute nstitute 5. K enya I nstitute nstitute of A dministrati nistration on 6. K enya I nstitute nstitute of Public Publi c Poli Policy Rese Research and Ana Analysis 7. K enya Marine arine and and Fishe Fi sherie ries Research I nsti nstitu tute te 8. K enya Medica dicall Research I nsti nstitute tute 9. K enya Sugar Research Founda oundati tion on 10. Nationa tional Museums of K enya 11. Tea Tea Research Fou Foundation ion

PARENT MI NISTRY NISTRY A griculture griculture A gricultu griculture re Environm nvironme ent and and Natural atural Resources esources Tra Trade and Ind Industry Off Office of the the Presi President (DPM (DPM)) Planning and National Development L ivestoc vestock k and and Fi Fisherie ries De Devel velopment Health A griculture griculture Off Office of the Vice Pre Preside sident/Hom nt/Home Affairs Agrricu Ag icultu lture

PC 3 - SERVI ERV I CE CORPORATI ONS ONS STAT E CORPORATI CORPORATI ON 1. A gricultu gricultura rall Developm opment Corporation Corporation 2. Bomas of K enya 3. Central ntral Water Service Services s Board oard

PARENT MI NISTRY NISTRY A gricultu griculture re Culture ulture, Social Social Service Services s Gende Gender and Sports Water and I rriga rri gation tion

4. Coast oast Water Service Services s Board oard

Water and and I rriga rrigation tion

5. Higher Educa ducati tion on L oans oans Board oard 6. K enya Accounta Accountants nts and and Secretari Secretarie es Nationa tional Examinati nation on Board oard 7. K enya Ferry Service Services s 8. K enya Nationa tional Exam xamination tion Counci ouncill 9. K enya Nationa tional L ibrary brary Service Services s

Educa ducati tion, on, Scie Scienceand and Technol chnology ogy Finance

10. K enya Tourist Board oard 11. K enya nya Wil Wildlife dlife Service Service 12. K enyatta nyatta Nationa tional Hospi ospital tal 13. L ake V ictoria ctoria North Water Service Services s Board oard

Transp ransport ort Educa ducati tion, on, Scie Science and Technol chnology ogy Culture ulture, Socia Social Service Services s Gende Gender and Sports Tourism and Wil Wildlif dli fe Touri ourism smand Wil Wildlife dlife Health Water and I rriga rrigati tion on

14. L ake V ictoria ctoria South Water Services Board oard

Water and I rriga rrigati tion on

15. L ocal ocal A uthori uthoriti tie es Provide Provi dent Fund und 16. Moi Teachi ching and Referral Hospital Hospital 17. Nairobi Water Services Board oard

L ocal ocal Government Health Water and I rriga rri gati tion on

18. National tional A ids Control Counci Council Off Office of the the Presi President 19. National tional Counci Council for L aw Reporting Reporting J ustice ustice and Consti Constituti tution ona al A ffairs 20. National Sports Stadia Stadia Manag anage ement Board Culture, ulture, Social Soci al Service Services s Gender and and Sports 21. Northern Water Services Board oard Water and I rriga rri gation tion 22. Rif Ri ft V alley Water Servi Service ces s Board oard

Water and I rriga rrigation

23. Tea Teachers Service ice Com Commiss ission ion

Edu Education ion, Scien ience and Tec Technolog logy

24. Water Water Resources sources Manag anagem ement A uthority uthority

Water Water and and I rriga rri gati tion on

25. Water Service Services s Trust Fund

Water and I rriga rri gation tion

PC 2 - REGI REGI ONAL ONAL DEVEL OPME OPMENT NT AUTHORI AUTHORI TI ES STAT E CORPORATI CORPORATI ON 1. Coast oast Development A uthori uthority ty 2. Ewaso Ng’iro North Development Authority 3. Ewaso Ng’iro South Development Authority 4. K erio rio V alley Devel Development A uthori uthority ty 5. L ake Basin sin Devel Development A uthori uthority ty 6. Tan Tana and Ath Athi Rive Rivers Develop lopment Authority

PARENT MI NISTRY NISTRY Regiona gional Development A uthori uthoriti tie es Regiona gional Devel Development Auth Authori oriti tie es Regiona gional Devel Development Auth Authori oriti tie es Regiona gional Devel Development A uthori uthoriti tie es Regiona gional Devel Development A uthori uthoriti tie es Regiona gional Devel Development Auth Authori oriti tie es

PC 1 – TERTI TERT I ARY EDUCAT EDUCATII ON AND TRAI NING CORPORATI CORPORATI ONS ONS STAT E CORPORATI CORPORATI ON 1. Cooperati ooperative ve Coll ollege of K enya 2. K enya Coll ollege of Communi unicati cations ons Tec Technolog logy 3. K enya Medical Trai raining Coll Col lege 4. K enya nya Utalii Coll College 5. K enya Water I nsti nstitute

PARENT MI NISTRY NISTRY Cooperati ooperative ve Development and and Marketing I nform nformation ation and and Communications unications Health Touri ourism smand Wil Wildlif dlife Water and I rriga rri gation tion

ANNEX II RECOMMENDED REMUNERATION AND BENEFITS FOR CHIEF EXECUTIVE OFFICERS OF STATE CORPORATIONS (KSHS. PER MONTH) PC 8 – FINANCIAL CORPORATIONS PC8 PC8 A Basic Salary

House Allowance

MINI MINIMU MUM M MAXI MAXIMU MUM M 420,000 620,000 60,000 80,000

Other Remunerative Allowances 60,000 Cost of Employment 540,000 APPLICABLE STATE CORPORATION 1. Kenya Revenue Authority

PARENT MINISTRY

Finance

PC8 PC8 B MINI MINIM MUM Basic Salary 400,000 House Allowance 60,000 Other Remunerative Allowances 40,000 Cost of Employment 500,000 APPLICABLE STATE CORPORATIONS 1. Consolidated Bank 2. Deposit Protection Fund Board 3. Kenya National Assurance Co. (2001) 4. Kenya Re-Insurance Corporation 5. Kenya Roads Board 6. National Bank of Kenya

100,000 800,000

MAX MAXIMUM IMUM 560,000 80,000 100,000 740,000

PARENT MINISTRY Finance Finance Finance

F inance inance Roads and Public Works Finance

7. National Hospital Insurance Fund 8. National Social Security Fund

Health Labour and Human Resource Development

PC8 PC8 C MINI MINIMU MUM M MAX MAXIMUM IMUM Basic Salary 210,000 400,000 House Allowance 60,000 80,000 Other Remunerative Allowances 30,000 60,000 Cost of Employment 300,000 540,000 APPLICABLE STATE CORPORATIONS 1. Agricultural Finance Corporation 2. Industrial and Commercial Development Corporation 3. Industrial Development Bank 4. Kenya Industrial Estates 5. Kenya Tourist Development Corporation 6. Kenya Post Office Savings Bank

PARENT MINISTRY Agriculture Trade and Industry Trade and Industry Trade and Industry

Tou Tourism rism and Wildlife ildlife Finance

PC 7 – COMMERCIAL/MANUFACTURING CORPORATIONS PC 7 A MINI MINIMU MUM M Basic Salary 400,000 House Allowance 60,000 Other Remunerative Allowances 40,000 Cost of Employment 500,000 APPLICABLE STATE CORPORATIONS 1. East African Portland Cement Company 2. Kenya Airports Authority 3. Kenya Electricity Generating Company

MAX MAXIMUM IMUM 560,000 80,000 100,000 740,000

PARENT MINISTRY Trade and Industry Transport Energy

4. Kenya Ports Authority 5. Kenya Pipeline Company 6. Kenya Power and Lighting Company 7. Kenya Railways Corporation 8. Postal Corporation of Kenya

Transport Energy

Energy

Transport Information and Communications 9. Telkom Kenya Limited Information and Communications PC 7 B MINI MINIM MUM MAX MAXIMUM IMUM Basic Salary 210,000 400,000 House Allowance 60,000 80,000 Other Remunerative Allowances 30,000 60,000 Cost of Employment 300,000 540,000 APPLICABLE STATE CORPORATIONS 1. Agro-Chemicals and Food Company 2. Chemelil Sugar Company 3. Kenya Seed Company Limited 4. Kenya Wine Agencies 5. National Housing Corporation 6. National Cereals and Produce Board 7. National Oil Corporation of Kenya 8. Nzoia Sugar Company 9. Pyrethrum Board of Kenya 10. South Nyanza Sugar Company 11. University of Nairobi Enterprises and Services Limited

PARENT MINISTRY Agriculture Agriculture Agriculture

Trad Trade and I ndustry Lands, Settlement and Housing Agriculture Energy Agriculture Agriculture Agriculture Education, Science and Technology

PC 7 C MINI MINIMU MUM M Basic Salary 180,000 House Allowance 60,000 Other Remunerative Allowances 30,000 Cost of Employment 270,000 APPLICABLE STATE CORPORATIONS 1. Gilgil Telecommunications Industries

MAX MAXIMUM IMUM 340,000 80,000 60,000 480,000

PARENT MINISTRY Information and Communications

2. Jomo Kenyatta Foundation 3. Kenya Broadcasting Corporation 4. Kenyatta International Conference Center 5. Kenya Literature Bureau

Education, Science and Technology Information and Communications Tourism and Wildlife

Education, Science and Technology 6. Kenya Medical Supplies Agency Health 7. Kenya Ordinance Factories Office of the President (DOD) Corporation 8. Kenya Safari Lodges and Tourism and Wildlife Hotels 9. National Water Conservation Water and Irrigation and Pipeline Corporation 10. Numerical Machining Complex Trade and Industry 11. School Equipment Production Education, Science and Unit Technology

PC 6 – REGULATORY CORPORATIONS PC 6 A MINI MINIMU MUM M MAX MAXIMUM IMUM Basic Salary 260,000 460,000 House Allowance 60,000 80,000 Other Remunerative Allowances 30,000 60,000 Cost of Employment 350,000 600,000 APPLICABLE STATE CORPORATIONS 1. Capital Markets Authority 2. Communications Commission of Kenya 3. Commission for Higher Education 4. Electricity Regulatory Board 5. Retirement Benefit Authority

PC 6 B Basic Salary House Allowance Other Remunerative Allowances

PARENT MINISTRY Finance Information and Communications Education, Science and Technology Energy Finance

MINI MINIM MUM MAX MAXIMUM IMUM 180,000 340,000 60,000 80,000 30,000 60,000

Cost of Employment APPLICABLE STATE CORPORATIONS 1. Coffee Board of Kenya 2. Council for Legal Education 3. Export Promotion Council 4. Export Processing Zones Authority 5. Investment Promotion Center 6. Kenya Plant Health Inspectorate Services 7. Kenya Bureau of Standards 8. Kenya Civil Aviation Authority 9. Kenya Sugar Board 10. National Environment Management Authority 11. Tea Board of Kenya

270,000

480,000

PARENT MINISTRY Agriculture Justice and Constitutional Affairs Trade and Industry Trade and Industry Trade and Industry Agriculture Trade and Industry Transport Agriculture Environment and Natural Resources Agriculture

PC 6 C MINI MINIMU MUM M MAX MAXIMUM IMUM Basic Salary 110,000 270,000 House Allowance 60,000 80,000 Other Remunerative Allowances 20,000 30,000 Cost of Employment 190,000 380,000 APPLICABLE STATE CORPORATIONS 1. Catering Training and Tourism Dev. Levy Trustees 2. Horticultural Crops Development Authority 3. Kenya Dairy Board 4. Kenya Industrial Property Institute 5. Kenya Sisal Board 6. Maritime Authority 7. NGO Co-ordination Bureau 8. National Tea Zones Development Authority 9. National Irrigation Board

PARENT MINISTRY Tourism and Wildlife Agriculture Livestock and Fisheries Development Trade and Industry Agriculture Transport Office of the Vice President/ Home Affairs Agriculture Water and Irrigation

10. Water Services Regulatory Board

Water and Irrigation

PC 5 – PUBL PUBL I C UNI UNI VERSI VERSI TI ES PC 5 MINI MINIM MUM MAX MAXIMUM IMUM Basic Salary 260,000 460,000 House Allowance 60,000 80,000 Other Remunerative Allowances 30,000 60,000 Cost of Employment 350,000 600,000 APPLICABLE STATE CORPORATIONS 1. Egerton University 2. Jomo Kenyatta University of Agriculture and Technology 3. Kenyatta University 4. Maseno University 5. Moi University 6. University of Nairobi

PARENT MINISTRY Education, Science and Technology Education, Science and Technology Education, Science and Technology Education, Science and Technology Education, Science and Technology Education, Science and Technology

PC 4 –TRAI –TRA I NING AND RESEARCH INS I NSTI TI TUTI TUT I ONS PC 4 A MINI MINIMU MUM M MAX MAXIMUM IMUM Basic Salary 210,000 400,000 House Allowance 60,000 80,000 Other Remunerative Allowances 30,000 60,000 Cost of Employment 300,000 540,000 APPLICABLE STATE PARENT MINISTRY CORPORATIONS 1. Kenya Agricultural Research Agriculture Institute 2. Kenya Institute of Public Policy Planning and National Research and Analysis Development PC 4 B Basic Salary

MINI MINIM MUM MAX MAXIMUM IMUM 180,000 340,000

House Allowance 60,000 80,000 Other Remunerative Allowances 30,000 60,000 Cost of Employment 270,000 480,000 PARENT MINISTRY

APPLICABLE STATE CORPORATIONS

1. Coffee Research Foundation Agriculture 2. Kenya Forestry Research Environment and Natural Institute Resources 3. Kenya Industrial Research and Trade and Industry Development Institute 4. Kenya Marine and Fisheries Livestock and Fisheries Research Institute Development 5. Kenya Medical Research Health Institute 6. Kenya Sugar Research Agriculture Foundation 8. National Museums of Kenya Office of the Vice President/Home Affairs 9. Tea Research Foundation Agriculture PC 4 C Basic Salary House Allowance Other Remunerative Allowances Cost of Employment

MINIMUM 110,000 60,000 20,000 190,000

APPL ICABLE STATE APPL CORPORATION

1. Kenya Institute of Administration

MAXIMUM 270,000 80,000 30,000 380,000

PARENT MINISTRY Office of the President (DPM)

PC 3 - SERVI CE CORPORATI ONS ONS PC 3 A MINI MINIMU MUM M MAX MAXIMUM IMUM Basic Salary 210,000 360,000 House Allowance 60,000 80,000 Other Remunerative Allowances 30,000 60,000 Cost of Employment 300,000 500,000 APPLICABLE STATE CORPORATION

PARENT MINISTRY

1. Agricultural Development Corporation 2. Higher Education Loans Board 3. Kenya Accountants and Secretaries National Examination Board 4. Kenya National Examination Council 5. Kenya Roads Board 6. National Hospital Insurance Fund 7. National Social Security Fund 8. Teachers Service Commission

Agriculture Education, Science and Technology Finance

Education, Science and Technology Roads and Public Works Health Labour and Human Resource Development Education, Science and Technology

PC 3 B MINI MINIM MUM MAX MAXIMUM IMUM Basic Salary 180,000 340,000 House Allowance 60,000 80,000 Other Remunerative Allowances 30,000 60,000 Cost of Employment 270,000 480,000 APPLICABLE STATE CORPORATIONS 1. Kenya Tourist Board 2. Kenya Wildlife Service 3. Kenyatta National Hospital 4. Moi Teaching and Referral Hospital 5. National Aids Control Council 6. National Sports Stadia Management Board

PARENT MINISTRY Tourism and Wildlife Tourism and Wildlife Health Health Office of the President Culture, Social Services Gender and Sports

PC 3 C MINI MINIMU MUM M MAX MAXIMUM IMUM Basic Salary 110,000 270,000 House Allowance 60,000 80,000 Other Remunerative Allowances 20,000 30,000 Cost of Employment 190,000 380,000 APPLICABLE STATE CORPORATIONS

PARENT MINISTRY

1. Bomas of Kenya 2. Kenya Ferry Services 3. Kenya National Library Services

Culture, Social Services Gender and Sports Transport Culture, Social Services Gender and Sports

4. Local Authorities Provident Local Government Fund 5. Nairobi Water Services Board Water and Irrigation 6. National Council for Law Justice and Constitutional Reporting Affairs 7. Water Resources Management Water and Irrigation Authority 8. Water Services Trust Fund Water and Irrigation PC 3 D MINI MINIMU MUM M MAX MAXIMUM IMUM Basic Salary 90,000 250,000 House Allowance 40,000 60,000 Other Remunerative Allowances 20,000 40,000 Cost of Employment 150,000 350,000 APPLICABLE STATE CORPORATIONS 7. Central Water Services Board 8. Coast Water Services Board 9. Lake Victoria North Water Services Board 10. Lake Victoria South Water Services Board 11. Northern Water Services Board 12. Rift Rift Valley Valley Water Water Servi Services ces Board Board

PARENT MINISTRY Water and Irrigation Water and Irrigation Water and Irrigation Water and Irrigation Water and Irrigation Water Water and and Irriga Irrigatio tion n

PC 2 – REGIONAL DEVELOPMENT AUTHORITIES PC 2 MINI MINIM MUM MAX MAXIMUM IMUM Basic Salary 90,000 250,000 House Allowance 40,000 60,000 Other Remunerative Allowances 20,000 40,000 Cost of Employment 150,000 350,000 APPLICABLE STATE CORPORATIONS

PARENT MINISTRY

13. Coast Development Authority 14. Ewaso Ng’iro North Development Authority 15. Ewaso Ng’iro South Development Authority 16. Kerio Valley Development Authority 17. Lake Basin Development Authority 18. Tan Tana and Ath Athi Rive Rivers Development ent A uthority uthority

Regional Development Authorities Regional Development Authorities Regional Development Authorities Regional Development Authorities Regional Development Authorities Regional Development Authorities

PC 1 – TERTIARY EDUCATION AND TRAINING INSTITUTIONS PC 1 MINIMUM Basic Salary 50,000 House Allowance 40,000 Other Remunerative Allowances 20,000 20,00 0 Cost of Employment 110,000 APPLICABLE STATE CORPORATIONS 5. Cooperative College of Kenya 6. Kenya College of Communications Technology 7. Kenya Medical Training College 8. Kenya Utalii College 5. Kenya Water Institute

*

MAXIMUM 150,000 60,000 40,000 250,000

PARENT MINISTRY Cooperative Development and Marketing Information and Communications Health Tourism and Wildlife Water and Irrigation

CEOs staying in state corporation’s housing units will be charged rent at prevailing market rates.

BENEFITS FOR CHIEF EXECUTIVE OFFICERS (CEOs) The Chief Executive Officers may also be entitled to the following benefits: 1.

Medical cover To be included in the medical scheme within the terms and conditions of service of state corporations.

2.

Leave days

Thirty (30) working days in a calendar year.

3. Annual Leave Thirty working days per calendar year to be utilized within the calendar year. 4. Leave allowance KShs. 50,000 or one-third (1/3) of basic salary, whichever is less, once in a calendar year. 5. Gratuity 31% of basic salary. 6. Group Accident Insurance State corporations to competitively source group accident insurance (not life) cover for all employees including the Chief Executive Officer. 7. Mileage claim Upto maximum AA rates when using personal/spouse’s vehicle for official duties in lieu of official transport. 8. Official Transport One official car with a driver except when on annual leave. 9. Car and House Purchase Loans This benefit will apply within the Corporation’s rules and regulations as approved from time to time by the Board and the parent Ministry . 10.

Club Membership Club membership fee only, to one club.

11. Subsistence Allowance Allowance while traveling outside outside Kenya

The provisions contained in Government circulars issued from time to time to be adopted.

12. Subsistence Allowance while traveling on duty within Kenya The provisions contained in Government circulars issued from time to time to be adopted. 13. Telephone services The provisions contained in Government circulars issued from time to time to be adopted. •

Ministries are advised that benefits outside the ones listed herein should cease.

ANNEX III II I (A) M AS ASTE TER R BAS BASII C SAL SAL ARY SCAL E FOR CHIEF CHIE F EXECUTI VE OFFI CERS OF STAT STAT E CORPORAT CORPORATII ONS ONSR ANGE NG E K SHS.50 SHS.50,00 ,000 T O K SHS.62 SHS.620,00 ,000.00 .00 PE R M ONT ONT H PC 8. 8. FI NANCIAL CORPORATI ONS RA NGE: NGE : K SHS. 21 210,00 ,000 T O K SHS. 62 620,00 ,000 PER PE R M ONT H Maxim aximum 8A Midpoi dpoint nt 8A Maxim ximum8B

Maxim ximum8C Midpoint 8B Midpoi dpoint nt 8C

210,000

305,000

Base ase 8C

Gene General ral Midpoi dpoint nt

400,000 Base ase 8B

C ategor gor y

Base

M idpoint idpoi nt M aximum

PC8.A PC8.B PC8.C Guide:

420,000 400,000 210,000

520,000 480,000 305,000

420,000

460,000

520,000

560,000

M edical edical cover

-

620,000

BENEFITS

Base ase 8A

620,000 560,000 400,000

Annual L eave ave L eave eave allowance all owance

a)

Board of Directors to administer the scale in consultation with parent ministry

b)

Any direct entry beyond midpoint to be approved approved only only in exceptional cases in consultation consultation with the parent parent

c)

Decision on entry point or adjustment thereof to depend on ability to pay and budgetary considerations considerations

d)

Running contracts to remain until expiry.

e)

Gratuity continues to be paid on the basis of basic salary.

Ministry.

Chief Chief Executive Executive Offi Office cers rs to becovered with other staff by the corporations’ approved approved scheme. 30 working worki ng days to be utili util ized in a calendar year. K shs. 50,000 or 1/3 of basic salary, whichever is is the less once in a calendar calendar year. 31% of basic salary. Competitively source group accident cover for all employees. Up to maximumcurrent AA AA rates to apply when using personal/spouse’s vehicle on official duties. One official offi cial car car with wi th a dri drive verr except when on annual leave l eave. A s per corporations’ rules rules approved by Boards and parent ministries. mini stries. Membership fee to one club only. only. Government circulars issued from time timeto time ti meto be adopted.

-

Gratuity Personal Personal accident accident M ile il eage age claim

-

Official Off icial transport transport Car/house ar/house loans

Important: For the above format format to be applied applied successfully, recruitment recruitment should be carried out out competitively.

-

Cl ub member ship Subsistence allowance all owance Outside K enya and on L ocal ocal tr ave avel

-

Tele Teleph pho one/fax /fax/e-ma -mail

-

Government circulars issued from time to time time to be adopted.

PC 7. 7. COMMERCI AL /MANUFACTURI NG CORPORATI CORPORATI ONS ONS RA NGE: NGE : K SHS. 18 180,00 ,000 T O 560,00 ,000 PER PER M ONT H

Maxim aximum7B Maxim ximum7C Midpoi dpoint nt 7A Midpoi dpoint nt 7B Gene General ral Midpoint dpoint A Midpoint 7C

180,000 Base ase 7C

210,000 260,000 305,000 340,000 Base ase 7B

400,000

415,000

Maxim aximum7A

480,000

560,000

Base ase 7A BENEFITS M edical cove cover

C ategor gor y Base

M idpoint idpoi nt M aximum A nnual nnual L eave ave

PC7.A

-

400,000

480,000

560,000

-

Chief Chief Executive Officers Off icers to be covered with other staff by the corporatio corporations’ ns’ approved scheme. 30 working worki ng daysto be utili util ized in a calendar year.


Maxim aximum7B Maxim ximum7C Midpoi dpoint nt 7A Midpoi dpoint nt 7B Gene General ral Midpoint dpoint A Midpoint 7C

180,000 Base ase 7C

210,000 260,000 305,000 340,000 Base ase 7B

400,000

415,000

Maxim aximum7A

480,000

560,000


C ategor gor y Base

-

M idpoint idpoi nt M aximum A nnual nnual L eave ave

PC7.A PC7.B PC7.C

Chief Chief Executive Officers Off icers to be covered with other staff by the corporatio corporations’ ns’ approved scheme. 30 working worki ng daysto be utili util ized in a calendar year. K shs. 50,000 or 1/3 of basic salary, whiche whi chever is is the less once in a calendar year. 31% of basic salary. Competitively source group accident cover for all employees. Up to maxim xi mum current AA A A rates to apply when using personal/spouse’s vehicl vehicle e on official offi cial duties duties. One official car with a driver except when on annual lea l eave. ve. A s per corporations’ rules rul es approved by Boards Boards and parent ministries. Membership fee f eeto one club only. only. Government circulars issued from time timeto time ti meto be adopted.

400,000 210,000 180,000

480,000 305,000 260,000

560,000 400,000 340,000

-

L eave eave allowance all owance

-

Guide:

Gratuity Personal Per sonal accident -

a)

Board of Directors to administer the scale in consultation with parent ministry.

M ile il eageclaim

b)


-

Ministry. c)


Official Off icial transport transport -

d)


C ar/house ar/ houseloans

e)


-

C lub member ship Subsistence allowance all owance Outside K enya and on L ocal ocal trave tr avel

Important: For the above format to be applied successfully, recruitment should be carried out competitively.


-

-

Government circulars issued from time timeto time ti meto be adopted.

27

PC 6. 6. REGUL ATORY AT ORY CORPORATI C ORPORATI ONS ONS RA NGE: NGE : K SHS. 11 110,00 ,000 T O K SHS.46 SHS.460,00 ,000 PER PE R M ONT H Maxim aximum6C Midpoint 6B

Maxim aximum6B

Maxim aximum6A Midpoi dpoint nt 6C 190,000 110,000

180,000

Gene General ral Midpoint dpoint 6B

Midpoi dpoint nt 6A

270,000 260,000

285,000

340,000

360,000

460,000


-

BENEFITS Base ase 6C

Base ase 6B

Base ase 6A

Annual L eave ave C ategor gor y

Base


PC6.A

260,000

360000

460,000


-

Chief Chief Executive Executive Offi Office cers rs to be covered with other staff by the corporati corporations’ ons’ approved scheme. 30 working worki ng days to be utili util ized in a calendar year. K shs. 50,000 or 1/3 of basic salary, whichever is the less once in a calendar year.

PC 6. 6. REGUL ATORY AT ORY CORPORATI C ORPORATI ONS ONS RA NGE: NGE : K SHS. 11 110,00 ,000 T O K SHS.46 SHS.460,00 ,000 PER PE R M ONT H Maxim aximum6C Midpoint 6B

Maxim aximum6B

Maxim aximum6A Midpoi dpoint nt 6C 190,000 110,000

180,000

Gene General ral Midpoint dpoint 6B

Midpoi dpoint nt 6A

270,000 260,000

285,000

340,000

360,000

460,000


-

BENEFITS Base ase 6C

Base ase 6B

Base ase 6A

Annual L eave ave

-

C ategor gor y

Base



PC6.A PC6.B PC6.C

260,000 180,000 110,000

360000 260,000 190,000

Gratuity Personal Personal accident accident -

460,000 340,000 270,000

Guide:

M ile il eage age claim

-

-

a)


b)



Ministry.

Car/house ar/house loans

c)


d)


e)


Important : For the above format to be applied successfully, recruitment should be carried out competitively.

-

Cl ub member ship Subsistence allowance all owance Outside K enya and on L ocal ocal tr ave avel

-


-

Chief Chief Executive Executive Offi Office cers rs to be covered with other staff by the corporati corporations’ ons’ approved scheme. 30 working worki ng days to be utili util ized in a calendar year. K shs. 50,000 or 1/3 of basic salary, whichever is the less once in a calendar year. 31% of basic salary. Competitively source group accident cover for all employees. A A rates to apply when using personal/spouse’s vehicle on official duties. One official offi cial car car with wi th a dri drive verr except when on annual leave l eave. A s per corporations’ rules rules approved by Boards and parent ministri mini stries. es. Membership fee to one club only. only. Government circulars issued from time timeto time ti meto be adopted.


PC 5. 5. PUBLI PUBLI C UNIVERSIT I ES RA NGE: NGE : K SHS. 26 260,00 ,000 T O K SHS.46 SHS.460,00 ,000 PER PE R M ONT H 28

Maximum PC5 Midpoint PC5

260,000

360,000

460,000

Base PC5

C ategor gor y PC5

Base

BENEFITS

M idpoint idpoi nt M aximum 260,000

360,000

M edical cove cover

-

460,000 A nnual nnual L eave ave

Guide:


-

Chief Chief Executive Officers Off icers to be covered with other staff by the corporatio corporations’ ns’ approved scheme. 30 working worki ng days to be utili util ized in a calenda calendar year. K shs. 50,000 or 1/3 of basic salary, whichever is the less once in a


260,000

360,000

460,000

Base PC5

C ategor gor y PC5

Base

BENEFITS

M idpoint idpoi nt M aximum 260,000

360,000

M edical cove cover

-

460,000 A nnual nnual L eave ave L eave eave allowance all owance

Guide: a)


b)

Any direct entry beyond midpoint to be approved approved only only in exceptional cases in consultation consultation with the parent parent Ministry.

c)


d)


e)


-

Gratuity Personal Per sonal accident M ile il eageclaim

-

Official Off icial transport transport C ar/house ar/ houseloans


-

C lub member ship Subsistence allowance all owance Outside K enya and on L ocal ocal trave tr avel Tele Teleph pho one/fax /fax/e-ma -mail

-

-

Chief Chief Executive Officers Off icers to be covered with other staff by the corporatio corporations’ ns’ approved scheme. 30 working worki ng days to be utili util ized in a calenda calendar year. K shs. 50,000 or 1/3 of basic salary, whichever is the less once in a calenda calendar year. 31% of basic salary. Competitively source group accident cover for all employees. Up to maximumcurrent AA AA rates to apply when using using personal/spouse’s vehicle on official duties. One official car with a driver except when on annual lea l eave. ve. A s per corporations’ rules rules approved by Boards B oards and parent ministries. ministries. Membership fee f eeto one club only. only. Government circulars issued from time timeto time ti meto be adopted.


29

PC4. PC4. TRAI TRA I NING AND RESEARCH I NSTI NSTI TUTI TUT I ONS ONS RA NGE: NGE : K SHS. 11 110,00 ,000 T O K SHS. 40 400,00 ,000 PER PE R M ONT H Maxim aximum4C Midpoi dpoint nt 4A

Maxim ximum4B

Maxim aximum4A Gene General ral Midpoi dpoint nt Midpoint dpoint 4C

Midpoint dpoint 4B 270,000

110,000

180,000

190,000

210,000 260,000

295,000

305,000

340,000

PC4. PC4. TRAI TRA I NING AND RESEARCH I NSTI NSTI TUTI TUT I ONS ONS RA NGE: NGE : K SHS. 11 110,00 ,000 T O K SHS. 40 400,00 ,000 PER PE R M ONT H Maxim aximum4C Midpoi dpoint nt 4A

Maxim ximum4B

Maxim aximum4A Gene General ral Midpoi dpoint nt Midpoint dpoint 4C

Midpoint dpoint 4B 270,000

110,000 180,000 400,000

Base ase 4C

Base ase 4B

C ategor gor y

Base

PC4.A PC4.B PC4.C

210000 180,000 110,000

190,000

210,000 260,000 540,000

295,000

305,000

340,000

Base ase 4A BENEFITS

M idpoint idpoi nt M aximum 305,000 260,000 190,000

M edical cove cover

400,000 340,000 270,000

-

A nnual nnual L eave ave L eave eave allowance all owance

Guide: f)


g)


h)


Ministry.

-


-


30


-

C lub member ship Subsistence allowance all owance

i)


j)


-

Chief Chief Executive Officers Off icers to be covered with other staff by the corporatio corporations’ ns’ approved scheme. 30 working worki ng days to be utili util ized in a calenda calendar year. K shs. 50,000 or 1/3 of basic salary, whichever is the less once in a calenda calendar year. 31% of basic salary. Competitively source group accident cover for all employees. Up to maximumcurrent AA AA rates to apply when using using personal/spouse’s vehicle on official duties. One official car with a driver except when on annual lea l eave. ve. A s per corporations’ rules rules approved by Boards B oards and parent ministri ministries es. Membership fee f eeto one club only. only. Government circulars issued from


PC 3. 3. SERVI SERVI CE CORPORATI ONS ONS RA NGE: NGE : K SHS. 90 90,00 ,000 T O K SHS.36 SHS.360,00 ,000 PER PE R M ONT H General Midpoint Midpoi dpoint 3C

Maxim ximum3C

Midpoi dpoint nt 3D 90,000

Maxim ximum3D Midpoint 3B 250,000

170,000

110,000 180,000 190,000 210,000 480,000 Base3D

Base3A

260,000

Maxim ximum3A Maxim aximum3B Midpoi dpoint nt 3A 275,000

270,000

285,000

340,000

360,000

i)


j)



PC 3. 3. SERVI SERVI CE CORPORATI ONS ONS RA NGE: NGE : K SHS. 90 90,00 ,000 T O K SHS.36 SHS.360,00 ,000 PER PE R M ONT H General Midpoint Midpoi dpoint 3C

Maxim ximum3C


Maxim ximum3D Midpoint 3B 250,000

170,000

110,000 180,000 190,000 210,000 480,000 Base3D Base3C Base3B

260,000

Maxim ximum3A Maxim aximum3B Midpoi dpoint nt 3A 275,000

270,000

285,000

340,000

360,000

Base3A

C ategor gor y

Base


PC3.A PC3.B PC3.C PC3.D

210,000 180,000 110,000 90,000

285,000 260,000 190,000 170,000

BENEFITS M edical cove cover

360,000 340,000 270,000 250,000

-


Guide: a)


b)


-


-

Ministry. c)


d)


e)



31

-

C lub member ship Subsistence allowance all owance Outside K enya and on L ocal ocal tr ave avel Tele Teleph pho one/fax/e x/e-ma -mail

-

-

Chief Chief Executive Officers Off icers to be covered with other staff by the corporatio corporations’ ns’ approved scheme. 30 working worki ng days to be utili util ized in a calenda calendar year. K shs. 50,000 or 1/3 of basic salary, whichever is the less once in a calenda calendar year. 31% of basic salary. Competitively source group accident cover for all employees. Up to maximumcurrent AA AA rates to apply when using using personal/spouse’s vehicle on official duties. One official car with a driver except when on annual lea l eave. ve. A s per corporations’ rules rules approved by Boards B oards and parent ministri ministries es. Membership fee f eeto one club only. only. Government circulars issued from time timeto time ti meto be adopted.



PC 2. 2. REGION REGI ONAL AL DEVEL OPME OPMENT NT AUTHORIT I ES RA NGE: NGE : K SHS. 90 90,00 ,000 T O K SHS. 25 250,00 ,000 PER PE R M ONT H Maxim ximumPC.2 PC.2

Midpoint PC. 2

90,000

170,000

Base PC. 2 C ategor gor y

Base

M idpoint idpoi nt

M aximum

PC2.

90,000

170,000

250,000

250,000


PC 2. 2. REGION REGI ONAL AL DEVEL OPME OPMENT NT AUTHORIT I ES RA NGE: NGE : K SHS. 90 90,00 ,000 T O K SHS. 25 250,00 ,000 PER PE R M ONT H Maxim ximumPC.2 PC.2

Midpoint PC. 2

90,000

170,000

250,000


Base

M idpoint idpoi nt

M aximum

PC2.

90,000

170,000

250,000

BENEFITS Guide:

M edical cove cover

a)


b)


A nnual nnual L eave ave

Ministry.


c)


d)


e)


-

-


-

Important: For the above format to be applied successfully, recruitment should be carried out competitively. Official Off icial transport transport C ar/house ar/ houseloans

32

-

C lub member ship Subsistence allowance all owance Outside K enya and on L ocal ocal trave tr avel Tele Teleph pho one/fax /fax/e-ma -mail

-

-

Chief Chief Executive Officers Off icers to be covered with other staff by the corporatio corporations’ ns’ approved scheme. 30 working worki ng days to be utili util ized in a calenda calendar year. K shs. 50,000 or 1/3 of basic salary, whichever is the less once in a calenda calendar year. 31% of basic salary. Competitively source group accident cover for all employees. Up to maximumcurrent AA AA rates to apply when using using personal/spouse’s vehicle on official duties. One official car with a driver except when on annual lea l eave. ve. A s per corporations’ rules rules approved by Boards B oards and parent ministries. ministries. Membership fee f eeto one club only. only. Government circulars issued from time timeto time ti meto be adopted.


PC 1. 1. TERT I ARY TRAI NING I NSTI NSTI TUTI ONS ONS RA NGE: NGE : K SHS. 50 50,00 ,000 T O K SHS. 15 150,00 ,000 PER PE R M ONT H

Maxim ximumPC.1 PC.1

Midpoint PC. 1

50,000

100,000

150,000


Base

M idpoint idpoi nt

M aximum

PC1.

50,000

100,000

150,000



-

-

Chief Chief Executive Officers Off icers to be covered with other staff by the corporatio corporations’ ns’ approved scheme. 30 working worki ng days to be utili util ized in a

PC 1. 1. TERT I ARY TRAI NING I NSTI NSTI TUTI ONS ONS RA NGE: NGE : K SHS. 50 50,00 ,000 T O K SHS. 15 150,00 ,000 PER PE R M ONT H

Maxim ximumPC.1 PC.1

Midpoint PC. 1

50,000

100,000

150,000


Base

M idpoint idpoi nt

M aximum

PC1.

50,000

100,000

150,000


-


-

Guide: a)


b)



Ministry.

-

c)


d)



e)



important:

For the above format to be applied successfully, recruitment should be carried out competitively.

-

C lub member ship Subsistence allowance all owance Outside K enya and on L ocal ocal tr ave avel

-

Tele Teleph pho one/fax/e x/e-ma -mail

-



ANNEX III II I (B) (B)

33

COST COST OF EMPL EM PL OYM OY M ENT FOR CHIEF CHI EF EXECUTI EXE CUTI VE OFFI CERS OF STA STATE TE CORPORATI ONS ONS - RANGE K SHS.1 SHS.11 10,00 ,000 T O K SHS.80 SHS.800,00 ,000.00 .00 PE R M ONTH NT H PC 8. 8. FI NANCIAL NANCIA L CORPORATI ONS RA NGE: NGE : K SHS. 30 300,00 ,000 T O K SHS. 80 800,00 ,000 PER PE R M ONT H Maxim aximum 8A Midpoi dpoint nt 8A Maxim ximum8B


300,000 740,000

Gene General ral Midpoi dpoint nt 550,000

420,000 500,000 540,000

620,000

670,000

800,000 BENEFITS

Base ase 8C

Base ase 8B

Base ase 8A

M edical cove cover


-

-

Chief Chief Executive Officers Off icers to be covered with other staff by the corporatio corporations’ ns’ approved scheme. 30 working worki ng days to be utili util ized in a

COST COST OF EMPL EM PL OYM OY M ENT FOR CHIEF CHI EF EXECUTI EXE CUTI VE OFFI CERS OF STA STATE TE CORPORATI ONS ONS - RANGE K SHS.1 SHS.11 10,00 ,000 T O K SHS.80 SHS.800,00 ,000.00 .00 PE R M ONTH NT H PC 8. 8. FI NANCIAL NANCIA L CORPORATI ONS RA NGE: NGE : K SHS. 30 300,00 ,000 T O K SHS. 80 800,00 ,000 PER PE R M ONT H Maxim aximum 8A Midpoi dpoint nt 8A Maxim ximum8B


300,000 740,000

Gene General ral Midpoi dpoint nt 550,000

420,000 500,000 540,000

620,000

670,000

800,000 BENEFITS

Base ase 8C

Base ase 8B

M edical cove cover

Base ase 8A

-

A nnual nnual L eave ave L eave eave allowance all owance C ategor gor y

Base


PC8.A PC8.B PC8.C

540,000 500,000 300,000

670,000 620,000 420,000

800,000 740,000 540,000

-


-

Guide: Official Off icial transport transport -

f)

Board of Directors to administer the scale in consultation with parent ministry

g)



Ministry. h)


i)


C lub member ship Subsistence allowance all owance Outside K enya and on L ocal ocal tr ave avel

j)


-

Tele Teleph pho one/fax/e x/e-ma -mail

-

-


Government circulars issued from time timeto time time to be adopted.


34


Maxim aximum7C Maxi M axim mum7B Midpoi dpoint nt 7B Gene General ral Midpoi dpoint nt Midpoint 7C 505,000 270,000

300,000

375,000

420,000

480,000

Maxim aximum6A Midpoint dpoint 6A

500,000

540,000

620,000

740,000

Base ase 7C

Base ase 7B



Maxim aximum7C Maxi M axim mum7B Midpoi dpoint nt 7B Gene General ral Midpoi dpoint nt Midpoint 7C 505,000 270,000

300,000

375,000

420,000

480,000

Maxim aximum6A Midpoint dpoint 6A

500,000

540,000

620,000

740,000

Base ase 7C

Base ase 7B


C ategor gor y

Base


PC7.A PC7.B PC7.C

500,000 300,000 270,000

620,000 420,000 375,000

740,000 540,000 480,000

-


Guide:

-


f)


g)


h)



i)



j)


M ile il eageclaim

-

Ministry.


35

-


-

-



PC 6. 6. REGUL ATORY AT ORY CORPORATI C ORPORATI ONS ONS RA NGE: NGE : K SHS. 19 190,00 ,000 T O K SHS.60 SHS.600,00 ,000 PER PE R M ONT H

Gene General Midpoi dpoint

Midpoint dpoint 6C

Midpoint dpoint 6B 365,000 380,000

190,000 600,000

270,000 285,000 300,000 375,000

Base ase 6C

Base ase 6B

C ategor gor y

Base

Maximum aximum6A Maxim aximum6C Maxim aximum6B Midpoint dpoint 6A

420,000

480,000 BENEFITS M edical edical cover


Base ase 6A

-


-

Chief Chief Executive Executive Offi Office cers rs to be covered with other staff by the corporations’ approved scheme. 30 working worki ng days to be utili util ized in a calendar year. K shs. 50,000 or 1/3 of basic salary, whichever is the less

PC 6. 6. REGUL ATORY AT ORY CORPORATI C ORPORATI ONS ONS RA NGE: NGE : K SHS. 19 190,00 ,000 T O K SHS.60 SHS.600,00 ,000 PER PE R M ONT H

Gene General Midpoi dpoint

Midpoint dpoint 6C


190,000 600,000

270,000 285,000 300,000 375,000

Base ase 6C

Base ase 6B

Maximum aximum6A Maxim aximum6C Maxim aximum6B Midpoint dpoint 6A

420,000

480,000 BENEFITS M edical edical cover

C ategor gor y

Base


PC6.A PC6.B PC6.C

350,000 270,000 190,000

475,000 375,000 285,000

Base ase 6A

-


600,000 480,000 380,000

-

Gratuity Personal Personal accident accident -

M ile il eage age claim

Guide: f)


g)


Official Off icial transport transport Car/house ar/house loans

Ministry.

-

-

h)


i)


Cl ub member ship -

j)


Subsistence allowance all owance


-

Outside K enya and on L ocal ocal tr ave avel Tele Teleph pho one/fax /fax/e-ma -mail

-

Chief Chief Executive Executive Offi Office cers rs to be covered with other staff by the corporations’ approved scheme. 30 working worki ng days to be utili util ized in a calendar year. K shs. 50,000 or 1/3 of basic salary, whichever is the less once in a calenda calendar year. 31% of basic salary. Competitively source group accident cover for all employees. ployees. A A rates to apply when using personal/spouse’s vehicl vehicle e on official duties. One official car with a driver except when on annual lea l eave. ve. A s per per corporations’ corporations’ rules approved by Boards Boards and parent ministries. Membership fee fee to one club club only. Government circulars circulars issu i ssued from time timeto time ti meto be adopted.

Government circulars circulars issu i ssued

36

PC 5. 5. PUBLI PUBLI C UNIVERSIT I ES RA NGE: NGE : K SHS. 35 350,00 ,000 T O K SHS. 60 600,00 ,000 PER PE R M ONT H


350,000

475,000

600,000 Base PC5 BENEFITS

C ategor gor y

Base


PC5

350,000

475,000

600,000

M edical cove cover

-


-

Chief Chief Executive Officers Off icers to be covered with other staff by the corporatio corporations’ ns’ approved scheme. 30 working worki ng days to be utili util ized in a calenda calendar year. K shs. 50,000 or 1/3 of basic salary,

PC 5. 5. PUBLI PUBLI C UNIVERSIT I ES RA NGE: NGE : K SHS. 35 350,00 ,000 T O K SHS. 60 600,00 ,000 PER PE R M ONT H


350,000

475,000

600,000 Base PC5 BENEFITS

C ategor gor y

Base


PC5

350,000

475,000

M edical cove cover

600,000

-


-

Guide: k)


l)



Ministry.

M ile il eageclaim

m)


n)



o)




-

-


-

-



37

PC4. PC4. TRAI TRA I NING AND RESEARCH I NSTI NSTI TUTI TUT I ONS ONS RA NGE: NGE : K SHS. 30 300,00 ,000 T O K SHS. 54 540,00 ,000 PER PE R M ONT H

Maxim aximum4C General Midpoi dpoint nt

Maxim ximum4A Maxim aximum4B

Midpoint dpoint 4C


190,000 540,000

270,000 285,000 300,000 375,000

Base ase 4C

Base ase 4B

Base ase 4A

Midpoint dpoint 4A

420,000

480,000

PC4. PC4. TRAI TRA I NING AND RESEARCH I NSTI NSTI TUTI TUT I ONS ONS RA NGE: NGE : K SHS. 30 300,00 ,000 T O K SHS. 54 540,00 ,000 PER PE R M ONT H

Maxim aximum4C General Midpoi dpoint nt


Midpoint dpoint 4C


190,000 540,000

270,000 285,000 300,000 375,000

Base ase 4C

Base ase 4B

C ategor gor y

Base

PC4.A PC4.B PC4.C

300,000 270,000 190,000

Midpoint dpoint 4A

420,000

480,000


M idpoint idpoi nt M aximum 420,000 375,000 285,000

M edical cove cover

540,000 480,000 380,000

-


-


Guide: p)


q)


r)


s)


t)


Ministry.

-


-



38

-


-

-



PC 3. 3. SERVI SERVI CE CORPORATI ONS ONS RA NGE: NGE : K SHS. 15 150,00 ,000 T O K SHS. 50 500,00 ,000 PER PE R M ONT H Maxim aximum3C Midpoi dpoint nt 3C



Midpoi dpoint nt 3D 150,000 190,000 500,000

Maxim ximum3D Midpoint dpoint 3B 325,000 350,000

250,000 270,000

285,000 300,000

375,000

Midpoi dpoint nt 3A 380,000 400,000

480,000 BENEFITS M edical cove cover

-

Base3D Base3A Base 3B Base3C


-

Chief Chief Executive Officers Off icers to becovered with other staff by the corporations’ approved approved scheme. 30 working worki ng days to be utili util ized in a calenda calendar year. K shs. 50,000 or 1/3 of basic salary, whichever whichever is the less less once in a calendar year.

PC 3. 3. SERVI SERVI CE CORPORATI ONS ONS RA NGE: NGE : K SHS. 15 150,00 ,000 T O K SHS. 50 500,00 ,000 PER PE R M ONT H Maxim aximum3C Midpoi dpoint nt 3C




Maxim ximum3D Midpoint dpoint 3B 325,000 350,000

250,000

190,000 500,000

270,000

285,000 300,000

Midpoi dpoint nt 3A 380,000

375,000

400,000

480,000 BENEFITS M edical cove cover

-

Chief Chief Executive Officers Off icers to becovered with other staff by the corporations’ approved approved scheme. 30 working worki ng days to be utili util ized in a calenda calendar year. K shs. 50,000 or 1/3 of basic salary, whichever whichever is the less less once in a calendar year. 31% of basic salary. Competitively source group accident cover for all employees. Up to maximumcurrent AA AA rates to apply when using using personal/spouse’s vehicle on official duties. One official car with a driver except when on annual lea l eave. ve. A s per corporations’ rules rules approved by Boards and parent ministries. Membership fee f eeto one club only. only. Government circulars issued from time timeto time ti meto be adopted.

Base3D Base3A


Base 3B Base3C


C ategor gor y

Base


PC3.A PC3.B PC3.C PC3.D

300,000 270,000 190,000 150,000

400,000 375,000 285,000 250,000

-


500,000 480,000 380,000 350,000

M ile il eageclaim

-


Guide: f)

-

-


g)

C lub member ship all owance Any direct entry beyond midpoint to be approved approved only only in exceptional cases in consultation consultation with the parent parentSubsistence allowance Outside K enya and on Ministry. L ocal ocal tr ave avel

h)


i)


j)



-

-

Government circul ci rculars ars issued from time to time ti meto be adopted.


39

PC 2. 2. REGION REGI ONAL AL DEVEL OPME OPMENT NT AUTHORIT I ES RA NGE: NGE : K SHS. 15 150,00 ,000 T O K SHS. 35 350,00 ,000 PER PE R M ONT H

Maxim ximumPC.2 PC.2 Midpoint PC. 2

150,000 350,000

250,000


Base

M idpoint idpoi nt

M aximum

PC2.

150,000

250,000

350,000


-

Chief Chief Executive Officers Off icers to be covered with other staff by the

PC 2. 2. REGION REGI ONAL AL DEVEL OPME OPMENT NT AUTHORIT I ES RA NGE: NGE : K SHS. 15 150,00 ,000 T O K SHS. 35 350,00 ,000 PER PE R M ONT H

Maxim ximumPC.2 PC.2 Midpoint PC. 2

150,000 350,000

250,000


Base

M idpoint idpoi nt

M aximum

PC2.

150,000

250,000

350,000


-

Guide: f)


g)



-

Ministry. h)


i)



j)


M ile il eageclaim


-


-


-

-

40



PC 1. 1. TERT I ARY TRAI NING I NSTI NSTI TUTI ONS ONS RA NGE: NGE : K SHS. 11 110,00 ,000 T O K SHS. 25 250,00 ,000 PER PE R M ONT H Maxim ximumPC.1 PC.1

Midpoint PC. 1

110,000 250,000

180,000


Base

M idpoint idpoi nt

M aximum


-

Chief Chief Executive Officers Off icers to be

PC 1. 1. TERT I ARY TRAI NING I NSTI NSTI TUTI ONS ONS RA NGE: NGE : K SHS. 11 110,00 ,000 T O K SHS. 25 250,00 ,000 PER PE R M ONT H Maxim ximumPC.1 PC.1

Midpoint PC. 1

110,000 250,000

180,000


Base

M idpoint idpoi nt

M aximum


PC1.

110,000

180,000

-

250,000 A nnual nnual L eave ave

Guide:


f)


g)


h)


i)


j)


Ministry.

-


-

Chief Chief Executive Officers Off icers to be covered with other staff by the corporatio corporations’ ns’ approved scheme. 30 working worki ng daysto be utili util ized in a calendar year. K shs. 50,000 or 1/3 of basic salary, whiche whi chever is is the less once in a calendar year. 31% of basic salary. Competitively source group accident cover for all employees. Up to maxim xi mum current AA A A rates


41

Draft Letterhead Address…………………. Address……………… …. Date:……………………..

Dear

Re: L etter tter of Appo A ppoiintme ntment for for Cha C hair irm man Following your appointment to be the Chairman of ………………………………………. I am pleased to convey to you the terms and conditions attached to this appointment. Duration

Draft Letterhead Address…………………. Address……………… …. Date:……………………..

Dear

Re: L etter tter of Appo A ppoiintme ntment for for Cha C hair irm man Following your appointment to be the Chairman of ………………………………………. I am pleased to convey to you the terms and conditions attached to this appointment. Duration 2. Your appointment is for …… years commencing ………………… and is tenable and renewable at the discretion of the Government. Place of Work 3. You will be based in ……………………., the headquarters of the ……………….. ……………………….. Duties and Responsibilities 4.

As a chairman, chairma n, your role will be to: -

Provide overall leadership to the Board especially on areas of policy development; Maintain a close but independent working relationship with the Chief Executive Officer; Act as an informal link and provide a public relations role between the Board, management and the stakeholders of the corporation; Harness the collective skills of the Board and its Committees with those of the executive team ; Ensure timeliness and relevance of the information and material gains to the Board; Encourage directors to participate fully in the deliberations of the Board; Head the Board’s evaluation process and generally demonstrate qualities of leadership; Conduct Board meetings efficiently; Avail yourself to the Directors and the Chief Executive Officer; Officer; Guide the Board decision making process and chair meetings of shareholders. L eadership

5.

In providing overall leadership to the Board, you will ensure that;

-

The Board is provided with and approves the Corporations’ strategic and Business Plans and approves operating budgets; Approves organizational structures relevant to the attainment of the corporate purpose and strategies; Monitors and evaluates Corporate performance Communicates with shareholders and others stakeholders effectively.

6. Without prejudice to the generality of the foregoing, you will be the signatory to the performance contract between the Government and your Corporation and will be responsible for ensuring delivery of the outcomes agreed in that performance contract.

Conflict of Interest 8. You will be required to immediately disclose in writing all interests in any ventures, contracts, or arrangements which may conflict with the interests of the Corporation or with the performance of your duties. Confidentiality 9. You will not, during your tenure of office, disclose business matters of confidential nature related to the corporation to anyone not authorized to receive them. Honorarium 10.

As Chairman, you will be paid a taxable monthly honorarium of Ksh…………

Sitting Allowance 11. You will be paid a taxable sitting allowance of Ksh…………………. The sitting allowance will also be paid when you are on authorized official duties in and outside the country.

Accommodation Allowance Allowance 12. When official duties necessitate an overnight stay away from home, you may claim and be paid accommodation allowance of ksh…………….. per day.

Lunch Allowance

13. When lunch is not provided at Board or Committee meetings, or when on approved official duty, you will be paid a lunch allowance of……………. per day. Transport 14. Where official transport is not provided to you to attend a meeting or an official function, which you are required to attend, you will be reimbursed the cost of travel by the most cost-effective public transport means on production of receipted bills, or be reimbursed for actual mileage performed on your or your spouse’s vehicle at the prevailing Automobile Association rates. Accident Insurance 15. You will be covered for personal accident accident which may occur occur while on, or traveling on Board’s business. Medical 16. Should you fall sick while on Board business you will be covered under the scheme available within the provisions of Government as may be issued from time to time. Telephone Service 17. You will be allowed a mobile telephone air time facility of ksh……….. per month. In addition you will be entitled to a land line pre-paid telephone card, up to a maximum of Ksh………. per month. 18. I wish you every success in your appointment and assure you of all the necessary support in the discharge of your duties as Chairman. Chairman. Yours sincerely,

…………………………………………………. (Designation of appointing authority)

I………………………….. hereby accept the above offer as per the terms and conditions stipulated herein. Signed…………………………………………

Date……

ANNEX V (B) Draft Letterhead Address……………………….. Date…………………………….

Dear

RE: LETTER OF APPOINTMENT FOR CHIEF EXECUTIVE Following satisfactory proof of medical fitness and your successful interview for the position of ……………….., the Board is prepared to engage you in the services of ………..on the following terms and conditions (or any other a ppropriate preamble).

1.

POSITION You will be engaged as …………………………… …………………………………………………. …………………….

2.

REPORTING You will be responsible to the Board of ……………..

3.

DUTIES AND RESPONSIBILITIES RESPONSIBILITIES As the Corporations Chief Executive Officer, you will be responsible for the implementation of the Board’s decision in a results oriented and timely manner to achieve the Corporations’ goals, objectives and agreed performance targets. This will entail inter alia: (a)

Carrying out the day to day business of the Corporation.

(b)

Developing of and recommending to the Board the long term strategy, business plans, and annual operating budgets; and establishing proper internal monitoring and control systems and procedures.

(c)

Coordinating and preparing business related proposals, reports and other submissions for consideration by the Board.

(d)

Ensuring that there is effective communication between the management and the Board as well as between different levels of management.

(e)

Providing leadership to the employees.

4.

(f)

Attending to personnel matters including organizational structures, appointments, welfare, training industrial relations, separation and effective management succession plans.

(g)

Ensuring continuous improvements in the quality and value of services and products provided by the Corporation.

(h)

Ensuring continuous achievement of the Corporation’s financial and operating goals and objectives.

(i)

Overseeing and ensuring implementation of corporate policies and programmes.

(j)

Maintaining a conducive work environment for attracting, retaining and motivating employees.

(k)

Fostering a corporate culture that promotes ethical practices and good corporate citizenship.

(l)

Acting as the principal spokesperson of the corporation.

(m)

Ensuring compliance with the laws of the country.

(n)

Any other responsibilities Corporation’s objectives.

as

may

be

necessary

to

achieve

the

PERFORMANCE MEASURES In addition to the duties and responsibilities detailed in this letter of appointment detailed Key Tasks will be agreed between you and the Board, and your performance will be reviewed and appraised regularly and documented in meetings of the Board.

5.

DURATION This contract of employment will be for………years commencing………… and the Board reserves the right to terminate the contract prematurely depending on your performance.

6.

RENEWAL OF APPOINTMENT Should you wish to be reappointed in the same position, you will be required to make a written request at least six (6) months before the expiry date of this contract.

7.

PLACE OF WORK You will be based at the Corporation’s headquarters.

8.

REMUNERATION You will be paid a basic salary of Kshs……..per month, housing allowance of Kshs…………….per month and other remunerative allowances totaling Kshs………per month for the duration of the contract. Remuneration paid to you will be subject to taxation at such rates as may be determined by law from time to time.

9.

PERFORMANCE RELATED AWARDS Depending on your performance appraisal by the Board and on its recommendation, and subject to the overall performance of the Corporation including ability to meet the cost, you may be accorded a performance related award subject to approval by the Minister for Finance in consultation with the State Corporations Corporations Advisory Committee. The key tasks tasks agreed with with the Board Board at the commencement of this appointment and thereafter will form part of this contract and will also form part of the elements on which assessment of Performance Awards will be based.

10. MEDICAL The Corporation operates a staff medical scheme. Subject to a satisfactory medical report at the time of appointment arising from a medical examination by a registered medical practitioner you will be a member of the scheme and will be entitled to medical benefits as per the scheme rules.

11. OVERTIME As a Manager, you will not quality for overtime payment or time off for extra hours worked including public holidays.

12. LEAVE You will be be entitled to thirty (30) working days leave per calendar year. Leave will not be carried forward except with the written approval of the Board setting out the reason for the extension. Any leave not taken during the leave year year will be forfeited unless authority to carry over the leave days due has been granted in wiring by the Board.

13. LEAVE ALLOWANCE You will be entitled to a leave allowance of Kshs……………or one-third of your basic salary whichever is less if you take more than half of your annual leave entitlement.

14. GRATUITY Upon successful completion of each contract term, you will qualify for a one-off Gratuity calculated at a rate of of 31% of your annual basic salary. This gratuity is taxable. The gratuity shall not not be paid if your separation from the the Company is due to gross misconduct as provided for in the Employment Act. If you are on secondment or a member of some other retirement benefit scheme to which you are already a member.

15.

GROUP LIFE AND GROUP ACCIDENT INSURANCE SCHEME You will be eligible for membership in the Group Life and Group Accident Insurance Scheme of the Corporation. The rules of the Scheme will be made available to you.

16.

OFFICIAL TRANSPORT You will be provided with official transport for use on official duties except when on leave.

17.

MILEAGE CLAIM If official transport is unavailable a maximum of the current AA rates will apply when you use your personal or your spouse’s vehicle for official duties of the Corporation owned house.

18.

HOUSING You will comply with Government regulations governing occupation of Corporation houses if you reside in a Corporation owned house.

19. TELEPHONE SERVICE You will be entitled to telephone facilities in accordance with provisions of current circulars approved by the Minister in consultation with State Corporations Advisory Committee from time to time.

20.

CLUB MEMBERSHIP

20. CLUB MEMBERSHIP The Corporation will pay your club membership fee for only restricted to one club.

21. ACCOMODATION ALLOWANCE WITHIN KENYA You will be paid accommodation allowance for nights spent on official duty within Kenya away from your station at the prevailing rates approved by the Minister in consultation with the State Corporations Advisory Committee from time to time.

22. SUBSISTENCE ALLOWANCE OUTSIDE KENYA You will be paid subsistence allowance for days spent on official duty outside Kenya at the prevailing rates approved by the Minister in consultation with the State Corporations Advisory Committee from time to time.

23. DUTIES AND CODE OF CONDUCT During the tenure of your service with the corporation you will: a) b) c) d)

Observe Corporation’s Rules and Regulations; Perform your duties diligently and faithfully; Perform any other duties given from time to time; Employ your time and attention and abilities to the services of the corporation as its Chief Executive Officer and employee.

24. CONFLICT OF INTEREST Except with the written consent of the Board, you shall not, either directly or indirectly during your service, engage or be concerned in any other service or business or receive any reward, commission or profit by virtue of your office other than as provided for in this letter of appointment. You will be required to immediately disclose in writing to the Board all interests in any ventures, contracts, or arrangements which may conflict with the interests of the corporation or with the performance of your duties.

25. CONFIDENTIALITY You will not, during your engagement disclose any confidential matters of the corporation to anyone not authorized or entitled to receive them.

26. EMPLOYMENT LAWS AND STAFF RULES AND REGULATIONS You will also be subject to provisions of Employment Act (Cap 226 of the Laws of Kenya) and to the Corporations Staff Rules and Regulations as issued and/or amended from time to time.

27. TERMINATION This contract may be terminated by either party giving a three months’ prior notice, or on payment of three (3) months basic salary and house allowance only in lieu of such notice.

28. OBLIGATION This offer and your acceptance thereof will constitute a binding contract between you and the Corporation. This contract supercedes all other agreements and/or arrangements hitherto entered into (if applicable) with you and the Corporation.

29. ACCEPTENCE If you accept this offer and terms and conditions as stipulated herein, please sign the duplicate copy of this letter to signify your acceptance and return to the undersigned on or before ………………. Yours sincerely,

(Appointing Authority)

ACCEPTANCE I (full name and postal address) hereby accept the above offer as per the terms conditions stipulated herein.

Signed………………………..

Date…………………………

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