Land deal worsens Kenya Railways pensioners’ woes

As Kenya Railways pensioners’ woes deepen, officials of the former Kenya Railways Workers Association, the umbrella body for all the pensioners of the institution, have expressed fear that they risk losing 10 of their properties in a land swap deal in lieu of accrued land rates.

They are reading a secret plot to defraud them of their properties.

“The Nairobi County government and the sole corporate trustee, Corporate and Pension Trust Services Ltd, have hatched a scheme to possess 10 of our properties in the name of unpaid land rates,” claimed Henry Toili, secretary of the Former Kenya Railways Workers Association.

Documents seen by the Sunday Nation show that the Nairobi County government is claiming amounts of up to Sh8.54 billion in unpaid land rates. These are for parcels located in Matumbato, Muthurwa, Railways Club, Ngong Road, Hurlingham, Good Shed, Landmawe and Ngara estate in Nairobi.

“Land rates for the 10 pieces are to be paid for or waived by the government as this was public land given to pensioners in 2006,” said Mr Toili.

The county government has computed accrued land rates as from the days of the defunct former East African Railways Corporation, which was operational before independence.

“If at all we are to pay, we should only pay for the rates as from October 2006 when the Kenya Railways Staff Retirement Scheme (KRSBS) was constituted,” said James Kanyeki, secretary-general of the Former Kenya Railway Workers Association.

The detailed agreement between the Kenya Urban Roads Authority (Kura), the registered trustees of the Kenya Railways Staff Retirement Scheme (KRSBS) and the Nairobi City County government, signed in February claims that the Corporate Trustee of the scheme has held several meetings and given relevant approval offering the land to settle the outstanding statutory debt.

The pensioners have, however, distanced themselves from the deal. “We have not met with the corporate trustee — Corporate and Pension Trust Services Ltd for the last four years. This agreement is foreign to us and as pensioners, we treat it as illegal and fraudulent,” said Mr Toili. The last time members of the scheme convened an annual general meeting was in 2014.

“There are also questions surrounding the legality of the sole corporate trustee, Corporate and Pension Trust Services Ltd. Of the 30 retirement scheme administrators licensed by the RBA, the name Corporate and Pension Trust Services Ltd does not feature anywhere,” said Mr Toili.

The officials claim that if the land is swapped, pensioners risk losing any compensation that they expect from the government following a plan to construct the Nairobi viaduct, which might see Wakulima Market relocated to Muthurwa estate.

“The current market rate for land within Nairobi central business district is Sh500 million per acre. We know there are five acres earmarked for the relocation of Wakulima Market to Muthurwa estate for which the government is supposed to compensate members of the scheme at the current market rate of Sh2.5 billion. If this land is swapped, members will lose on this compensation,” said Mr Kanyeki.

READ: Retirees sue Kenya Railways to block sale of Ngara homes

“Those claiming to swap our land have their eyes on the Big Four Agenda on affordable housing. They know that the parcels would be well-compensated following the ground-breaking in September,” said Mr Toili.

The officials now want the president to come to the rescue of the pensioners. “We have deprived vulnerable pensioners who saved for this property which was given to us by the government in 2006 in exchange of Sh17 billion — members’ savings,” he said.

If we lose property at such a rate, how will the scheme raise member’s pensions? Mr President extend your crackdown on corruption to the Kenya Railways Staff Benefits Scheme and their Trustee,” Mr Toili expressed.