The TelPosta Pension Scheme is set to sell 64 properties across the country to address an excessive concentration of funds in real estate that has breached legal investment limits.
The portfolio includes 16 flats, 34 bungalows, and 14 undeveloped plots in Nairobi, Naivasha, Nyeri, Nanyuki, Kericho, Karatina, Isiolo, and other towns.
This sale represents one of the largest asset disposals by a pension fund in recent years. Trustees say the move is necessary to bring the scheme’s holdings within the statutory 30 percent ceiling and to generate cash for pension payments to retirees from the former State-owned telecommunications and postal organizations.
The pension scheme’s members are mainly former staff of the defunct Kenya Posts & Telecommunications Corporation, Telkom Kenya, Postal Corporation of Kenya, and the Communications Commission of Kenya (now Communications Authority of Kenya).
Most of the properties were transferred to the scheme over two decades ago during the restructuring of the postal and telecoms sector.
“In November 1999, the government vested in TelPosta Pension Scheme trustees various properties for purposes of discharging pension liabilities in respect of any person who on June 30, 1999, was entitled to receipt of a pension,” the trustees stated in a notice to the public.
The rapid increase in claims for pension payments, particularly from retirees whose entitlements date back to the late 1990s, has highlighted a mismatch between the scheme’s largely physical assets and the need for liquid funds.
“The scheme’s property portfolio currently stands at 82 percent, which is above the 30 percent limit set by law. The board of trustees sought and received concurrence to dispose of the properties to ensure compliance,” the trustees added.
The properties are now formally on the market, with bids closing on December 1.
While real estate has traditionally been a strong component of legacy pension schemes, especially for those inheriting government land and housing, it has often restricted cash flow, making it difficult to meet immediate pension obligations. The sale is expected to free up resources and ensure timely payouts to beneficiaries.
