Kenya Railways is set to sell prime assets worth approximately $123 million (KSh16 billion) to settle longstanding pension arrears.
The plan targets two key city properties, Makongeni and Ngara estates, which are expected to generate significant revenue for the ailing Staff Retirement Benefits Scheme.
The move comes after growing pressure from retirees and parliament over delayed pension payments. The corporation, under the leadership of Managing Director Philip Mainga, has outlined a detailed repayment plan, with hopes to clear outstanding pension arrears by January 2026.
Additionally, Kenya Railways is awaiting a KSh2 billion ($15.5 million) payment from the Kenya National Highways Authority (KENHA) for a parcel of land, which will also help address the debt.
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Makongeni Estate, valued at around KSh8 billion ($61.9 million), and Ngara Estate, which could fetch between KSh8 billion and KSh10 billion ($62 million to $77 million), will be sold to provide the retirement scheme with a sustainable financial foundation.
Mainga emphasized that the sale is essential for the long-term stability of the scheme, especially given that legal constraints prevent the corporation from suing other government agencies to recover debts.
Senators have urged Kenya Railways to speed up the asset sale process and provide immediate relief to retirees awaiting their pensions.
Despite previous efforts to liquidate assets, the scheme continues to face challenges with funding gaps, but the corporation is committed to resolving the crisis.
This proposed sale, which would be one of the largest state-led liquidations for pension funding, is expected to relieve thousands of retirees who have been waiting for their dues for years.
