An ESOP is an employee benefit plan, similar in some ways to a profit-sharing plan. In an ESOP, a company sets up a trust fund, into which it contributes new shares of its own stock or cash to buy existing shares. Alternatively, the ESOP can borrow money to buy new or existing shares, with the company making cash contributions to the plan to enable it to repay the loan. Regardless of how the plan acquires stock, company contributions to the trust are tax-deductible, within certain limits as required by Kenya Revenue Authority from time to time
Why Us
We take pride in showcasing the expertise of our team across a range of disciplines, including finance, accounting, legal, and technology. Our team’s wealth of experience in administering ESOPs over the years, coupled with our extensive track record of serving companies across diverse sectors, underscores our ability to provide high-quality ESOP solutions to our clients.
What We Do
We offer an extensive array of services and collaborate with you through the entire life cycle of your ESOP. Whether you are new to the concept of Employee Ownership Plans or already have an established plan but require more streamlined administration, we step in at any point in the plan’s life cycle.
Our Services
Administration Services
- Maintenance of member data and accounts;
- Processing and validation of contributions in the ESOP;
- Allocation to the members accounts income earned;
- Preparation of member benefits statements reflecting the value of the shares they hold in the ESOP;
- Calculation and payment of ESOP benefits as they fall due;
- Management of member relations;
- Regular reporting to Founder/Sponsor on any membership issues and any regulatory compliance, among others;
- Provision of advisory services to the members on matters relating to the plan;
- Facilitation of member education days/forums;
- Management of communication process to the employees concerning the operations of the ESOP
Scheme Accounting Services
- Maintain the books of accounts of the assets, income and expenditure
- Carry out all fund reconciliations
- Prepare and submit quarterly detailed financial reports to the relevant parties of the Founder/Sponsor;
- Prepare and submit to the scheme’s auditors the financial statements in the prescribed format for audit;
- Prepare and submit to KRA all the required financial returns;
- Prepare abbreviated annual financial reports to members.
Trustee Support and Advisory Services
- Relationship Management with the fund manager, custodian, auditor, and any other service providers or advisers;
- To monitor service delivery to ensure compliance with service agreements;
- To receive and review reports from service providers and provide independent assessments and guidance to Founder/Sponsor;
- To manage audits;
- Facilitation and attendance of Trustees meetings;
- To provide advisory services to the members.
- Liaising with the appointed and approved stock broker for the ESOP plan on trade settlement.
Other support services provided by the Scheme Administrator
- Review of transaction documents and legal Documents
- Preparation of member communications materials;
- Updating the Founder/Sponsor on industry dynamics including changes in regulations with recommendations on any compliance action steps to be taken by the responsible parties.