Trustees ordered to outline plans to recover pension cash

Friday, September 18th, 2020 00:00 |
Kenya Railways staff houses in Makongeni. Photo/PD/FILE

Retirement Benefits Authority (RBA) has ordered Trustees of the Kenya Railways Staff Retirement Benefits Scheme (KRSRBS) to outline measures it has invoked to recover over Sh892 million from purchasers of the pensioners’ multi-billion shilling properties.

The benefits scheme has 14 days to do so.

RBA gave the directions after hearing a petition by 6,000 pensioners filed by lawyer Titus Koceyo who disclosed that for over 10 months they have not received their monthly pensions running over Sh750 million.

Besides arrears, the pensioners are also asking RBA to stop the trustees from irregularly selling part of their Sh30 billion assets.

Koceyo states in the petition that the trustees have without consent of the pensioners placed an advertisement in the media inviting bidders to purchase properties in Nairobi and Mombasa.

The pensioners allege the trustees have invited bids for properties along Woodland in Hurlingham estate measuring 0.48 acres, Ngara (43 acres), Mombasa/Block XXVI/941 measuring 2.67 acres along Chambilo Road, Kizingo Area comprising two four-storey block of flats each comprising 16 units of two bedrooms each.

They have also advertised another property measuring 0.71 acres situated along Kindaruma Road off Ngong Road Nairobi.

Through Fredrick Okwomi Anyasi, 64, the pensioners state the scheme is owed a total of Sh892,270,548 from the sale of property to various state departments and individuals.

“An injunction be issued stopping the trustees from selling or disposing suit properties then compelled to collect outstanding balances of sale of proceeds amounting to Sh892, 270,548 before proceeding with any intended sale,” Koceyo pleaded with RBA.

Not collected dues

The authority has been told the trustees have not collected an outstanding debt of Sh105 million from Muthurwa Development for sale of the land on which Muthurwa Market is built.

From the Kenya Urban Roads Authority (KURA), the pensioners are seeking Sh227,503,348.The trustees have not collected Sh453,860,000 from Matumbato Primix Enterprises Ltd, owned by  embattled Nairobi Governor Mike Sonko.

Sonko is operating from this property after he was stopped from accessing his gubernatorial office after his arraignment in the Sh357m graft case.

Kenya Power and Lighting Company owes the pensioners Sh26m from purchase of land on which the Muthurwa KPLC power station stands.

The trustees have not collected Sh79,902,200 from Mahadi Investments which bought  some property along Valley Road Nairobi.

Irregular sale

RBA has required the trustees to avail information detailing the terms of sale of the five properties between them and the buyers.

RBA has directed the trustees to confirm whether obligations by both parties have been fulfilled.

“You are required to avail information the efforts you have put in place to collect the outstanding debts within 14 days from September 9,” RBA told the trustees through its manager supervision  Jackson Nguthur.

The pensioners allege a company by the name of Banodi Limited has expressed interest to buy the 0.71 acres in Kindaruma Road Nairobi for Sh213 million and the 0.48 acres in Hurlingham at Sh140 million even before they consented.

They claim the trustees are breaching their fiduciary duty by allegedly colluding with buyers to irregularly sale the properties which they hold in trust. 

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