Kenya Railways has announced plans to sell off two prime properties and several parcels of land to settle arrears owed to its pensioners.
Through the Kenya Railway Staff Retirement Benefit Scheme (KRSRBS), the state corporation has earmarked White House in Nairobi, Chambilo Estate in Mombasa and six plots in Nairobi for sale to pay its pensioners arrears which are in excess of Sh394 million.
The sale of the two residential properties and parcels of land along Kindaruma Road, Ngong Road and the Railway Club in Nairobi is expected to raise Sh4 billion.
Speaking during KRSRBS’ AGM held on Friday in Nairobi, Board of Trustees chairperson Beryl Odinga said the scheme’s Board of Trustees – in consultation with fund managers – had agreed to redevelop houses in Ngara, Makongeni and Land Mawe estates to increase the scheme’s total asset value.
“The Board of Trustees and fund managers have developed a strategy for redevelopment of property in Ngara, Makongeni and Land Mawe estates with private sector on equity, or joint venture basis,” said Ms Odinga.
KRSRBS also plans to tap into the growth potential of Nairobi’s Upper Hill estate by refurbishing residential buildings it owns in the estate to increase its rental income.