NAIROBI, Kenya, Nov 11 – The TelPosta Pension Scheme (TPS) has announced plans to dispose of several real estate assets across the country after breaching statutory investment limits that cap property holdings at 30 percent of total assets.
The move comes after Treasury vested various properties in the Scheme in 1999 to help discharge pension liabilities for retirees of the defunct Kenya Posts and Telecommunications Corporation (KPTC), Telkom Kenya Limited, Postal Corporation of Kenya, and the Communications Commission of Kenya.
Currently, the Scheme’s real estate portfolio stands at 82 percent, nearly three times above the legal threshold, prompting trustees to seek and receive approval to sell some of its properties to comply with pension investment regulations.
“Maintaining the property portfolio at 82 percent exposes the Scheme to regulatory risk and undermines diversification,” said a trustee familiar with the process
“Our priority is to safeguard pensioners’ benefits by aligning with the Retirement Benefits Authority’s compliance standards.”
Under Tender Reference TPS/DISP/001/2025, the properties are located in Isiolo, Kapsabet, Karatina, Kericho, Londiani, Mweiga, Nairobi, Naivasha, Nanyuki, Nyahururu, Nyandarua, and Sotik.
The move reflects a growing trend among Kenyan pension schemes seeking to rebalance their portfolios away from over-exposure to real estate, amid a sluggish property market and tightening oversight by the Retirement Benefits Authority (RBA).
The sale, once concluded, is expected to raise billions of shillings and restore TelPosta Pension Scheme’s compliance position a crucial step toward stabilizing its long-term sustainability and protecting pensioners’ savings.
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