Kenya Railways retirees have raised alarm over what they term as an illegal takeover of their property along Valley Road, Nairobi. The land in question—L.R. NO. 209/1064/1, 2 & 3—was vested in the Kenya Railways Staff Retirement Benefits Scheme (KRSRBS) in 2006 to support pension payments for former employees. However, recent events have cast doubt over the scheme’s ability to protect its assets and fulfill its mandate.
The retirees claim that despite a 2014 sale agreement between KRSRBS and Mahadi Investment Limited, the property has been seized by a private developer with alleged government backing. Reports indicate that in the early hours of November 15, 2024, Kenya Railways Corporation (KRC) officers and police forcibly evicted Mahadi Investment staff from the land and demolished existing structures. The site is now under police guard, with unknown individuals occupying the premises without explanation.
According to the retirees, Mahadi Investment Limited was awarded the property through an open tender process and had paid Kshs. 200 million of the agreed Kshs. 400 million purchase price. However, KRSRBS failed to provide the necessary completion documents, leading to a delay in the final payment of Kshs. 79.9 million. Despite numerous requests, Kenya Railways has allegedly refused to issue the required documents, leaving the transaction in limbo.
The forceful eviction has left retirees questioning the fate of the funds already disbursed for pension payments. “If the scheme used proceeds from this sale to pay retirees, what happens now that the land has been grabbed?” asked one concerned pensioner.
This latest dispute is part of a larger trend of mismanagement and irregularities within the KRSRBS. Past reports have highlighted cases of controversial land sales, delayed pension payments, and legal disputes over scheme properties.
The retirees are now calling on President William Ruto’s government to intervene, return the property to the rightful owners, and protect pensioners from further exploitation. Whether the government will act remains to be seen, but for now, the retirees face an uncertain future.
