There is light at the end of the tunnel for long suffering Kenya Railway pensioners as the corporation plans to sell prime city assets to offset outstanding dues.
The move comes amid mounting pressure from pensioners and parliament over delayed payments under the Kenya Railways Staff Retirement Benefits Scheme (KRSRBS), weighed by liquidity constraints for years.
Kenya Railways managing director Philip Mainga said the corporation has already structured payment schedule to January 2026 and is awaiting another Sh2billion from Kenya National Highways Authority to clear the Sh2.26 billion owed to retirees.
“We are waiting for KENHA to pay us for a parcel of land we sold to them its about Sh2 billion that will enable us clear the balances and going forward we are looking at other prime parcels like Makongeni Estate and Ngara to plan for future repayments,” Mainga told The Senate Committee on Labour and Social Welfare.
The plan follows growing pressure from pensioners and Parliament over delayed payments under the Kenya Railways Staff Retirement Benefits Scheme (KRSRBS), which has been grappling with liquidity challenges for years.
Petitioners who appeared before the Committee said the delay has seen many retirees reportedly struggle to meet daily expenses and access medical care, with some dying before receiving their dues.
According to Mainga, Makongeni Estate has been valued at approximately Sh8 billion, while Ngara Estate is estimated to fetch between Sh8 billion and Sh10 billion.
The sale of these prime city assets, he said, would provide the financial base needed to stabilise pension payments and ensure the scheme remains sustainable in the long term.
“You know the law blocks us from taking other agencies to court for debt recovery, or auctioning of property to recover debt,” added Mainga.
Committee members urged Kenya Railways to expedite the process and explore interim measures to cushion pensioners awaiting payment.
Kajiado Senator Samuel Kanar Seki, proposed the use of debt recovery agencies to follow up on pending remittances owed by government institutions to the scheme.
“It is unfair that pensioners who served this country diligently have to wait decades for their rightful dues,” said Senator Seki, calling for greater accountability and faster disbursements from the Treasury.
The Kenya Railways Staff Retirement Benefits Scheme was established in 2006 following the restructuring of the corporation.
It inherited liabilities exceeding Sh16 billion, including pension arrears and unremitted contributions from the defunct state corporation.
Despite ongoing asset sales and transfers, funding gaps have persisted due to delays in asset liquidation and protracted bureaucratic processes.
Mainga assured the lawmakers that the corporation was committed to resolving the pension crisis once and for all.
“We have a clear plan to ensure this does not repeat itself. Our goal is to clear all outstanding balances by early next year and secure a sustainable payment structure going forward,” he said.
The move marks one of the most significant state efforts to liquidate idle assets to meet pension obligations a step that, if executed as planned, could finally bring relief to thousands of long-suffering Kenya Railways retirees.
However, even as the agency looks to sell the property Makongeni residents have in the past week held demonstrations against the move.
by JACKTONE LAWI
