A significant development is unfolding for retired Kenya Railways employees who have endured lengthy delays in receiving their pension benefits. The corporation has announced a strategic initiative to liquidate high-value real estate assets in Nairobi to address longstanding financial obligations to its pensioners. This decision comes amid increasing scrutiny from both retirees and parliamentary committees concerning the delayed payments from the Kenya Railways Staff Retirement Benefits Scheme.
The corporation’s managing director, Philip Mainga, recently provided testimony before the Senate Committee on Labour and Social Welfare, outlining a structured payment plan extending through January 2026. Mainga revealed that the corporation is currently awaiting a disbursement of approximately two billion shillings from the Kenya National Highways Authority for a previously sold parcel of land. This anticipated payment is expected to clear a significant portion of the current 2.26-billion-shilling liability owed to retirees.
Looking toward a more sustainable financial future for the pension scheme, Kenya Railways is contemplating the sale of even more substantial properties. Specifically, the corporation has identified Makongeni Estate, valued at around eight billion shillings, and Ngara Estate, with an estimated market value between eight and ten billion shillings. The divestment of these prime assets is intended to establish a solid financial foundation that will stabilize pension disbursements and ensure the long-term viability of the retirement benefits scheme.
This situation has generated considerable hardship for pensioners, with petitioners informing the Senate Committee that many retirees face daily struggles to afford basic necessities and medical care. The human cost of the delay was starkly illustrated by reports that some pensioners have passed away without ever receiving their full entitlements. During the committee session, lawmakers expressed strong views on the matter, with Kajiado Senator Samuel Kanar Seki characterizing the situation as profoundly unfair to individuals who served the nation diligently. The senator advocated for greater accountability and proposed the engagement of specialized debt recovery agencies to pursue outstanding remittances owed by other government entities to the pension scheme. This comprehensive asset realization strategy represents a pivotal step toward resolving a protracted issue and delivering long-awaited financial security to the corporation’s retired workforce.
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