Kenya Railway to sell assets to pay pensioners dues

Kenya Railway plans to sale its assets to pay its pensioners arrears in excess of Sh394 million.

Through its retirement management arm, Kenya Railway Staff Retirement Benefit Scheme, the corporation will refurbish and property to improving the schemes liquidity.

The move will result in payment of pension arrears owed to railways retirees.

Speaking during an AGM last week, the scheme’s Board of Trustees chairperson Beryl Odinga said that it had paid monthly pension of Sh278 million leaving a balance of Sh394 million.

The pensioners have been receiving their monthly pension on time since last year, she said.

“I am optimistic that the historical liquidity challenge will be addressed permanently and the pensioners’ arrears which are in excess of Sh394 million and Sh75 million in deferred sum shall be paid to members,” she said.

The plan includes the refurbishment of buildings in upper-hill estates so as to fully realise the commercial rent and re-development of other properties in Ngara, Makongeni and Land Mawe estates.

Compliance

The scheme will also see the disposal of Chambilo estate in Mombasa, White House in Nairobi and several other plots and properties in Ngong, Kindaruma road and the Railway Club.

Disposal of the properties is expected to raise Sh4 billion. Each pensioner receives a minimum of Sh2, 000 every month translating to a Sh56 million monthly pay-cheque.

The retirement scheme will as from January next year start updating deferred members data to capture any changes especially with current dependants.

Once successful, the scheme will comply with the Retirement Benefits Authority requirement of maintaining a 30 per cent scheme assets in form of property.