The Kenya Railways Staff Retirement Benefits Scheme is now
remitting Sh70 million monthly to its members. The scheme was
established in 2006 to safeguard the interests of more than 10,000
pensioners.
The change of fortunes has been attributed
to ongoing reforms and management undertaken by Corporate & Pension
Trust Services Ltd.
SPONSOR OF SCHEME
This
is a wholly owned subsidiary of Alexander Forbes Financial Services
East Africa Ltd, which was appointed by Kenya Railways Corporation, the
sponsor of the scheme.
Addressing over 1,000 members
during the scheme’s 5th annual general meeting at the Railways Club in
Nairobi last week, Corporate & Pension Trust Services Managing
Director Anthony Kilavi said there is need to regularise timely payment
of pensions to members to make their lives more comfortable.
“Improvement
of this scheme has been an uphill task, which we have achieved despite
numerous challenges, ranging from arrears, uncollected debts and
frequent court cases and injunctions as well as low monthly rental
collections,” he said.
POSES CHALLENGE
Mr
Kilavi said the scheme has 99 per cent investment in properties located
in various parts of Nairobi and Mombasa noting that this poses a
significant liquidity challenge to the scheme.
He said
the Retirement Benefits Authority requires all pension schemes to
maintain only 30 per cent of the fund in form of property, adding that
it was working to comply with this regulation.
Mr
Kilavi said despite a myriad challenges, the scheme had launched an
aggressive debt collection campaign, which has resulted in improved
monthly rental income, from Sh26 million to Sh46 million.
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