By Michelle Ndaga
Kenya Railways Corporation (KRC) has announced plans to liquidate prime urban properties valued at around KSh 16 billion (≈ US$123 million) to settle long‑standing pension liabilities under the Kenya Railways Staff Retirement Benefits Scheme.Â
Managing Director Philip Mainga told the Senate Committee on Labour and Social Welfare that the sales target includes key estates in Makongeni and Ngara, Nairobi.
KRC is also awaiting payment of about KSh 2 billion from the Kenya National Highways Authority (KeNHA) from a previous land sale, which would be channeled to pension payments.Â
This move underscores broader pressures on state‑owned enterprises and pension funds that accrued liabilities often without parallel asset growth or contributions.
Liquidating real estate to meet obligations helps address retiree hardship, but raises questions about asset management, transparency and long‑term funding sustainability.
Pensioners welcomed the announcement but pressed for accelerated payment schedules and clearer timelines. For the property market, the disposal of high‑value land parcels could have implications for supply, pricing and redevelopment, especially as one of the earmarked estates is already linked to the affordable‑housing drive.
Sources: Business Insider Africa
