Kenya Railways is taking a bold step to address its pension arrears crisis by liquidating assets worth $123 million. The company plans to sell off prime city-center properties, including the Makongeni and Ngara estates, to settle long-overdue pension obligations under its Staff Retirement Benefits Scheme. This move comes as a response to escalating pressure from retirees and parliament, who have been demanding timely pension payments. Philip Mainga, the Managing Director of Kenya Railways, revealed a detailed repayment schedule extending to January 2026. He also highlighted a potential KSh2 billion payment from the Kenya National Highways Authority (KENHA) for a previously sold land parcel, which could significantly contribute to the pension fund. However, the sales of these valuable estates are not without challenges. Mainga noted legal constraints that prevent the company from taking other agencies to court for debt recovery or auctioning property. As a result, Kenya Railways is relying on voluntary asset sales to address the pension crisis. The Senate Committee has urged the company to expedite the disposal process and provide interim relief to waiting retirees. Kajiado Senator Samuel Kanar Seki emphasized the unfairness of pensioners having to wait decades for their rightful dues, calling for greater accountability and swifter payouts. Despite previous attempts, the funding gap persists due to bureaucratic delays and slow sales. Mainga assured lawmakers of the company's commitment to resolving the crisis, aiming to clear outstanding balances by early next year and establish a sustainable payment structure. However, recent protests by Makongeni residents have added political and social tensions to the proposed sale of the estate, making it a controversial yet necessary step to ensure the financial stability of the pension scheme.
