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Posta pension scheme sells buildings to raise funds

Postal Corporation of Kenya Pension Scheme (PCKPS) is seeking to raise millions of shillings through sale of leasehold properties in Nairobi and at the coast amid rising payouts to retirees and reduced investment earnings.

The Sh5.9 billion-asset scheme has invited developers to take over two buildings in Mombasa and one each in Nairobi and Voi sitting on a combined area measuring nearly a hectare in leasehold deals.

Interested buyers have until December 17 to hand in their bids after obtaining bid documents for a fee with those interested in conducting inspection free to do so at own cost, according to tender document which does not state reserve prices. The scheme has been battling a court suit by former employees after fallout on the amount of pensions they should be paid.

More than 40.8 percent of the scheme’s 3,693 members were pensioners in the year ended June 2019, its financial statement shows, with benefit payouts rising 11.09 percent to Sh389.08 million in the review period. In Nairobi, the scheme has put on sale the five-storey Ronald Ngala Post Office building which sits on 0.093 hectares parcel on a 50-year leasehold deal dating from March 2013, according to tender documents.

The scheme’s trustees are also looking for a developer to take over nine-storey GPO Building in Mombasa for 99 years from June 1965, a building which sits on 0.459ha parcel and houses Huduma Centre among others.

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The scheme is further scouting for a buyer for one-bedroomed residences in Voi, Taita Taveta, on a 0.12ha parcel.

“Trustees of Postal Corporation of Kenya Pension Scheme reserve the right to accept or reject any tender in whole or in part, and are not to accept the highest or any bid and shall not be required to give reason for their decision,” the scheme says in the tender papers.

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