A high-stakes legal confrontation involving the Teleposta Pension Scheme and contentious land valued at approximately Sh1 billion is escalating as the matter advances to Kenya’s Supreme Court.
The case stems from a long-running ownership battle over a two-acre parcel in Nairobi’s Upper Hill, where pensioners seek vindication against claims by Park Avenue Investments Limited, associated with former President Moi’s ally, that they unlawfully acquired the property in 1996.
In March 2025, the Court of Appeal upheld the pension scheme’s ownership, dismissing Park Avenue’s claims as “hot air” and bringing some relief to more than 9,000 former Kenya Posts and Telecommunications Corporation (KPTC) workers managed by the scheme.
Despite the landmark ruling, Telposta has escalated the dispute to the Supreme Court to consolidate judicial clarity and prevent further attempts to undermine the appellate decision.
The move aims to seal the legal status of the land once and for all, ensuring that no party can challenge the pensioners’ ownership based on prior inconsistent rulings or allegations of fraud.
The contested property, originally part of KPTC holdings before the pension scheme’s formation, became caught in decades-long legal crossfire. Park Avenue Investments claimed to have legitimately acquired the title in 1996 via Trust Bank Limited.
Telposta, however, argues the transaction was flawed and that the title was improperly transferred, insisting rightful ownership rests with the pension scheme, which had inherited the property following restructuring of KPTC.
The Court of Appeal’s judgment delivered on March 28, 2025, represented a decisive moment, with Justices Okwengu, Mativo and Macharia affirming Telposta’s title and dismissing the county government’s and Park Avenue’s claims.
The personal claims by Park Avenue were rejected, and the ruling mandated that any occupiers on the property should vacate unless they are bona fide purchasers in line with law.
While ongoing, Telposta has begun reclaiming other properties, including eviction of defaulting tenants along Jogoo Road in Nairobi, where arrears had reached Sh154 million.
These efforts are part of a broader strategy to restore the pension scheme’s financial stability and comply with regulatory thresholds that limit property holdings to no more than 30 percent of assets.
Critics warn that unless the Supreme Court delivers a conclusive ruling, Kenya’s land governance system remains vulnerable to duplicative claims and stymied investment in legacy pension assets. Pensioners and scheme managers view the appeal as a critical move to deter further legal erosion and to protect future income streams tied to real estate assets.
The final judgment, when issued, will have deep implications not only for Telposta, but for the broader integrity of Kenya’s land adjudication system and institutional asset management.
As the Supreme Court prepares to hear the appeal, stakeholders from the legal, pension and property sectors await clarity.
The outcome could establish a benchmark for how long-standing land disputes involving state-related pension schemes are handled and could set a precedent for safeguarding institutional assets built over decades.
Written By Ian Maleve
