Kenya Railways Staff Retirement Benefit Scheme has paid out Sh200 million pension arrears to more than 8,500 pensioners. Since its establishment, in 2006, the scheme has faced major challenges including unpaid pension arrears and delays in the payment of monthly pension due to a shortfall in liquidity. Whereas the liability was immediate, rental income from property was not able to adequately cover for pension payment. Nyakundi said by putting in place proper mechanisms and systems, the rental income has increased from Sh26 million to about Sh50 million, enabling the scheme to strengthen its capacity to pay monthly pension. “We are not there yet as our pension payroll is Sh73 million while the rental collection is 50 million.

Source: The Star February 02, 2017 22:02 UTC