Tenants win reprieve in KPA houses auction plan

The High Court has temporarily stopped the planned auction of several residential houses belonging to Kenya Ports Authority Pension Scheme (KPAPS).

Justice Dorah Chepkwony issued the temporary orders following an application by Bwana Mohamed Bwana, a tenant in one of the houses in Nyali, Mombasa.

Mr Bwana says the scheme’s trustees have, in breach of the trust deed and their duty to act in good faith for the benefit of the members, advertised to sell by public auction the properties including the house he is living in.

“The trustees’ decision to sell the pension scheme prime properties was not approved or sanctioned by members who are contributors and beneficial owners of the assets, investments and scheme funds,” argues Mr Bwana.

Mr Bwana argues that the trustees' action of advertising the properties for sale without members’ consent or giving preference to them was unlawful, in breach of the trust deed and regulation of the KPA Retirements Benefits Scheme.

He says trustees of KPAPS have failed to call for meetings which ought to pass or propose resolutions that directly affect the acquisition or disposal of the scheme properties in breach of the trust deed.

Mr Bwana adds that he may lose his pension and the house he is currently residing in, hence suffer irreparable harm.

“The defendants threaten and intend, unless restrained by court, to continue with public auction of the pension scheme prime properties,” argues Mr Bwana in his suit against the trustees.

The plaintiff further says despite his pleas to the trustees to stop the public auction or give him and other members’ priority, they have vowed to proceed with the auction.