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Economy

Railways trustees get 14-day ultimatum on Sh500m Sonko-linked firm debt

Nairobi Governor Mike Sonko
Nairobi Governor Mike Sonko. FILE PHOTO | NMG 

The Retirement Benefits Authority (RBA) has ordered trustees of the Kenya Railways Pension Scheme to explain within 14 days measures it has taken to recover Sh453.9 million owed to it by a company associated with Nairobi Governor Mike Sonko.

The scheme has listed Matumbato Primix Enterprises Limited which houses the private offices of Mr Sonko as owing it Sh453,860,000.

Mr Sonko operates from this property after he was barred from accessing his gubernatorial city office following his arraignment in a Sh357 million graft case. All the five enterprises being pursued by the scheme have not paid Sh892,270,548 to the scheme.

Other debtors being pursued by the trustees of the Kenya Railways Staff Retirement Benefits Scheme (KRSRBS) are Muthurwa Development which built the Muthurwa Market in Nairobi.

This property was acquired when President Uhuru Kenyatta was Finance minister.

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The Kenya Urban Roads Authority (KURA) owes the scheme Sh227,503,348.

Kenya Power & Lighting Company owes the pensioners’ body Sh26 million from purchase of land on which the Muthurwa KPLC power station stands.

The trustees have not collected Sh79,902,200 from Mahadi Investiments which bought some property along Valley Road Nairobi.

RBA gave the directions after hearing a petition of 6000 pensioners filed by lawyer Titus Koceyo who disclosed that for over ten months they have not received their monthly perks running more than Sh750 million.

Besides arrears, the pensioners are also asking RBA to stop the trustees from irregularly selling five properties of their Sh30 billion base assets.

Mr Koceyo states in the petition that the trustees have without consent of the pensioners placed an advert in the media inviting bidders to purchase properties in Nairobi and Mombasa.

The pensioners state that the trustees have invited bidders for properties along Woodland in Hurlingham Estate measuring 0.48 acres, Ngara (43 acres), Mombasa/Block XXVI/941 measuring 2.67acres along Chambilo Road, Kizingo Area comprising two four-story block of flats each comprising 16 units of two bedrooms each.

They have also advertised another property measuring 0.71 acres situate along Kindaruma Road off Ngong Road Nairobi.

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