A pension fund representing workers in all counties yesterday kicked off the search for real-estate partners to develop two prime properties in Nairobi and Thika as it races to plug a gaping contribution hole and meet regulatory ratios.
CPF Financial Services group managing director Hosea Kili invited developers to propose how the two parcels of land could be developed to yield maximum returns for both parties.
According to the scheme’s December 31, 2015, valuations, the Nairobi quarter-acre plot next to its headquarter was valued at Sh840 million while the 23-acre Thika property was put at Sh308 million. The value of the land on which the property for sale would be put up has since risen.
Mr Kili said bidders for the two properties would be given a copy of the current valuation to help them make informed decisions.
The investment would particularly enable the fund to meet future demands of its aging members. As at December 31, 2016, the membership stood at 18,304 up from 7,883 registered three years earlier.
Mr Kili said the move would on top help meet the Retirement Benefits Authority legal threshold of holding not more than 30 per cent of the funds in fixed assets with the funds generated from the two properties directly channelled to the Laptrust Scheme.
The government owes CPF Sh30 billion in non-remitted funds but Mr Kili said the fund was financially sound as it holds securities, parcels of land and developed properties worth Sh60 billion.
“The government is financially solid and has resumed remitting the pension contributions. Once it settles into office, talks on the legacy debt will resume,” he said.
As at December 2016, Nairobi County owed Laptrust Sh10.71 billion, Mombasa Sh1.82 billion and Nairobi Water Sh1.89 billion.