Failure to comply with contribution rules is considered a breach of fiduciary duty and may result in penalties or legal action.

A failure to perform the above duties amounts to an offense for which the employer may be prosecuted. If the company is found guilty and convicted of the offense, the following penalties will be imposed;

Failure to pay Employer Contribution:

• Fine not exceeding K100,000.00
• Imprisonment for a term not exceeding 2years
• Both of the above

Failure to Remit Contributions deducted:

• Fine not exceeding K500,000.00
• Imprisonment for a term not exceeding 15 years
• Both of the above

Note: where the offense continues after conviction, a default penalty fine of K5,000.00 a day will be imposed until the fine is paid.