Telposta Pension Scheme (TPS) is set to exit its property portfolio through the sale of assets worth Ksh10 billion ($76.7 million) across the country improve liquidity and enhance returns for its 6,000 members.

The scheme has already advertised the sale of 64 properties and is pursuing court cases to repossess assets that were illegally acquired. It has so far recovered a property on Muchai Drive in Nairobi valued at Ksh1 billion ($7.68 million).

TPS Administrator and Trust Secretary Peter Rotich said during a members’ education forum in Mombasa that the scheme had received approval from National Treasury to dispose of the properties following declining returns.

He noted that proceeds from the sale will be reinvested in high-impact investments such as the Nairobi Securities Exchange and government bonds. The scheme is also considering investing in the newly established National Infrastructure Fund as well as in roads and airports to generate better returns for members and support national development.

“Once we exit from this property portfolio, nothing stops my board from saying, “Why don’t we put close to Ksh2 billion in infrastructure funds?’ We will be there. We will participate in it,” Rotich said.

Currently, the scheme has exceeded the 30 per cent investment ceiling set by the Retirement Benefits Authority Act, with 83 per cent of its assets tied up in property.

“We are going to exit almost Ksh10 billion from properties. It will not be a one-day affair. We are advertising in phases, and once we reach close to Ksh10 billion, we will improve our liquidity. At the moment, liquidity is a challenge,” he added.

Rotich said that once liquidity improves, the scheme will engage an actuary to assess the possibility of reviewing pension payments, especially for members currently earning as little as Ksh5,000.

“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.

He further assured members that pension reviews are part of the board’s commitments, although the process may take one to two years.

“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 Chair of Board of Trustees Julius Cheptiony said the disposal of the properties will enable about 3,000 members currently earning below Ksh10, 000 to receive higher pensions. He pointed out that the forum was not a ceremonial event but a platform for open, honest and constructive engagement with members.

“As trustees, we hold in trust what you worked a lifetime to earn. Your pension represents security, dignity, and peace of mind. We recognize the weight of that responsibility and take it seriously,” said Cheptiony.

He assured members that the scheme remains member-centric and will uphold transparency and accountability throughout the property disposal process.

Joseph Okoth, 72, welcomed the move to sell the properties but urged the scheme’s leadership to exercise caution when reinvesting the proceeds to ensure better returns for members.

• A Tell Media / KNA report / By Sadik Hassan