Trustees told to issue definite plans to recover pension cash

Wednesday, October 14th, 2020 00:00 |
Residents of Muthurwa estate in Nairobi relocate following an eviction notice by the Kenya Railways Staff Retirement Benefits Scheme earlier this month. Photo/Courtesy

The 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, among them Nairobi Governor Mike Sonko.

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

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

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

Pensioners argue that the trustees have invited bidders for properties along Woodland in Hurlingham Estate measuring 0.48 acres, Ngara (43 acres), Mombasa/Block XXVI/941 (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 in Nairobi. 

Through Fredrick Anyasi, 64, the pensioners say 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.

The authority was told that 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.

Graft case

The trustees have not collected Sh453,860,000 from Matumbato Primix Enterprises Limited, owned by Sonko.

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

Kenya Power and Lighting Company owes the pensioners Sh26 million from purchase of land on which the Muthurwa KPLC power station stands.

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

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

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

“You are required to avail information on the efforts you have put in place to collect the outstanding debts,” 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 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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