The scheme has already placed 64 properties on the market and is actively pursuing legal action to recover assets irregularly acquired.
One such property on Muchai Drive in Nairobi, valued at Sh1 billion, has already been repossessed.
Speaking during a members’ education forum in Mombasa, TPS administrator and trust secretary Peter Rotich said the move follows approval by the National Treasury, citing declining returns from real estate investments.
Rotich said proceeds from the sale will be channelled into higher-yield investments, including government bonds and equities at the Nairobi Securities Exchange.
The scheme is also exploring opportunities in the National Infrastructure Fund, as well as projects in roads and airports.
“Once we exit from this property portfolio, nothing stops the board from saying, ‘Why don’t we put close to two billion in infrastructure funds?’ We will be there. We will participate in it,” he said.
Currently, 83 per cent of TPS assets are tied up in property, significantly above the 30 per cent cap set by the Retirement Benefits Authority Act, raising liquidity concerns.
“We are going to exit almost Sh10 billion from properties. Once we get that money, it will not be a one-day affair. We are advertising in phases, and once we reach close to Sh10 billion, we will improve our liquidity. At the moment, liquidity is a challenge,” Rotich said.
Improved liquidity will pave the way for a review of pension payouts, particularly for members currently earning as little as Sh5,000 per month.
“We shall also engage the sponsor of the scheme and seek approval to review these benefits. We want our retirees to live in dignity,” he said.
Rotich indicated that the review process could take between one and two years but assured members that the board is committed to delivering better outcomes.
“This journey might take one or two years, but we are giving members a reason to hope. Wait for it, you will get it. That is the guarantee the board has given,” he said.
TPS cairman Julius Cheptiony said the planned asset disposal is expected to benefit approximately 3,000 members currently earning below Sh10,000, through improved pension payments.
He said the engagement forum was designed to foster transparency and accountability, noting that trustees remain committed to safeguarding members’ lifetime savings.
“As trustees, we hold in trust what you worked a lifetime to earn. Your pension represents security, dignity, and peace of mind. We recognise the weight of that responsibility and take it seriously,” he said.
A pensioner, Joseph Okoth, 72, welcomed the move but urged caution in reinvesting the proceeds to ensure sustainable and higher returns.
