The Association of Kenya Railways Retirees (Akerare) with a membership of 9,500 representing 90% of the pensioners in the Kenya Railways Scheme has dismissed claims by a rival group that Sh3.5 billion of the scheme has been lost.
The association chairman, Mr Johnson Miano, says contrary to claims perpetuated by Kenya Railways Pensioners Association secretary-general Robert Azaria, the scheme is doing well.
Mr Miano acknowledged that the scheme had faced numerous challenges initially since 99% of its assets are property-based and raising liquidity required to pay monthly pension had been a challenge.
“Previous boards of trustees grappled with the challenges of managing our scheme and regrettably its fortunes continued to decline as the welfare of the pensioners deteriorated. The scheme was involved in a number of disputes and Court cases with irregular pension payments,” Mr Miano added.
ALSO SEE: BUSINESSES RETURN AS WESTGATE REOPENS
He said the scheme’s challenges led to Retirement Benefits Authority (RBA) stepping in for inspection and issued a report in November 2011 which detailed findings that raised serious concerns on the management of the scheme.
The report recommended a number of remedial measures, which included the firing the Board of Trustees and the appointment of a professional Corporate Trustee to manage the scheme. It also recommended that all future sales of property would be done through an open tendering process.
“Since the appointment of Corporate & Pension in July 2012 the recovery agenda of the scheme is ongoing and currently a monthly pension of Ksh70 million is paid on time to retires on time,” he said.
NEXT READ: TRADERS WITH HEARING IMPAIREMENT TRAINED ON E-PROCUREMENT
When do they refund the savings of any deceased member
Some windows are now waiting for 3 years since they raised the claims…Frustrated almost giving up