Retirement scheme’s fortunes get better
What you need to know:
- This is a wholly owned subsidiary of Alexander Forbes Financial Services East Africa Ltd, which was appointed by Kenya Railways Corporation, the sponsor of the scheme.
- “Improvement of this scheme has been an uphill task, which we have achieved despite numerous challenges, ranging from arrears, uncollected debts and frequent court cases and injunctions as well as low monthly rental collections,” he said.
The Kenya Railways Staff Retirement Benefits Scheme is now remitting Sh70 million monthly to its members. The scheme was established in 2006 to safeguard the interests of more than 10,000 pensioners.
The change of fortunes has been attributed to ongoing reforms and management undertaken by Corporate & Pension Trust Services Ltd.
SPONSOR OF SCHEME
This is a wholly owned subsidiary of Alexander Forbes Financial Services East Africa Ltd, which was appointed by Kenya Railways Corporation, the sponsor of the scheme.
Addressing over 1,000 members during the scheme’s 5th annual general meeting at the Railways Club in Nairobi last week, Corporate & Pension Trust Services Managing Director Anthony Kilavi said there is need to regularise timely payment of pensions to members to make their lives more comfortable.
“Improvement of this scheme has been an uphill task, which we have achieved despite numerous challenges, ranging from arrears, uncollected debts and frequent court cases and injunctions as well as low monthly rental collections,” he said.
POSES CHALLENGE
Mr Kilavi said the scheme has 99 per cent investment in properties located in various parts of Nairobi and Mombasa noting that this poses a significant liquidity challenge to the scheme.
He said the Retirement Benefits Authority requires all pension schemes to maintain only 30 per cent of the fund in form of property, adding that it was working to comply with this regulation.
Mr Kilavi said despite a myriad challenges, the scheme had launched an aggressive debt collection campaign, which has resulted in improved monthly rental income, from Sh26 million to Sh46 million.
