Teleposta Pension Scheme to Raise Billions from Asset Sales, Shift to Infrastructure Bonds and High-Yield Investments
“I have consistently received my pension on time, but it is modest and often strained by the rising cost of living. I hope these reforms will lead to better payouts, Elizabeth Kitany”
Peter Rotich addresses the media in Eldoret, outlining the scheme’s multi-billion asset disposal strategy and transition toward higher-yield investments to safeguard pensioners’ future.
The Teleposta Pension Scheme has intensified its nationwide member engagement campaign as it rolls out a multi-billion shilling asset disposal program aimed at improving returns, enhancing liquidity, and securing long-term sustainability for its pensioners.
Speaking during a member education forum in Eldoret, the scheme’s Administrator and Trust Secretary, Peter Rotich, outlined the fund’s strategic transition from property-heavy investments to more liquid and higher-yielding financial instruments, including government infrastructure bonds.
“We are not just meeting a statutory obligation on member education—we are engaging our pensioners transparently on where we are, the challenges we face, and the strategic direction we are taking,” said Rotich.
Asset Disposal and De-risking Strategy
At the core of the restructuring is a deliberate “de-risking” of the scheme’s portfolio, which is currently overexposed to real estate. Property accounts for approximately 83 percent of the fund’s assets—significantly above the 30 percent cap recommended by the Retirement Benefits Authority (RBA).
Rotich explained that the illiquid nature of property investments has constrained the scheme’s flexibility, particularly in meeting emerging financial obligations and optimizing returns.
“De-risking means reallocating from assets that are difficult to exit into investments that are more liquid and offer better returns. It is a strategic shift, not a fire sale,” he emphasized.
In Eldoret, the scheme previously held six residential properties, of which only four remain. These units are now earmarked for sale and are expected to fetch millions of shillings as part of the broader disposal plan.
The overall exercise is projected to generate billions of shillings, which will be reinvested in government securities, equities, and infrastructure-linked instruments.
Shift to Infrastructure and Financial Markets
Following approval from the National Treasury in December 2024, the scheme has begun implementing a phased disposal of its property portfolio, with the process expected to run for up to two years.
Rotich noted that proceeds from the sales will be channeled into higher-yielding opportunities, including Treasury bonds, infrastructure bonds, and listed equities at the Nairobi Securities Exchange.
“While some of our commercial properties yield about seven to eight percent annually, government securities are currently offering returns of between 13 and 14 percent. This presents a compelling case for portfolio rebalancing,” he said.
He added that the scheme is positioning itself as a participant in national development financing.
“By investing in infrastructure bonds, we are not only securing competitive returns for our members but also contributing to Kenya’s economic growth,” Rotich noted.
Member Reactions and Expectations
Pensioners who attended the Eldoret forum expressed cautious support for the restructuring, citing longstanding concerns over underperforming assets.
One member, Artoso Ruto, underscored the urgency of the reforms given the scheme’s closed nature.
“Our scheme no longer receives new contributions, so we must maximize returns from the resources we have. Some properties have become liabilities rather than assets,” he said.
He also highlighted operational challenges affecting property investments, including legal disputes, land ownership conflicts, and encroachment, which have eroded returns.
“These issues require costly and time-consuming court processes. Disposing of such assets allows the scheme to focus on more productive investments,” he added.
Another pensioner, Elizabeth Kitany, expressed hope that the changes would translate into improved benefits.
“I have consistently received my pension on time, but it is modest and often strained by the rising cost of living. I hope these reforms will lead to better payouts,” she said.
Background and Outlook
The Teleposta Pension Scheme’s restructuring follows years of deliberations and regulatory compliance, culminating in Treasury approval to dispose of its property assets. Initial sale advertisements were issued in October 2025, marking the start of a phased divestment process.
The fund has faced declining returns from real estate due to high maintenance costs, low rental yields, and administrative inefficiencies. In contrast, Kenya’s fixed-income market has recently offered more attractive returns, prompting a strategic pivot.
Rotich assured members that the scheme remains financially stable and has maintained a strong record of timely pension payments. He added that once the asset reallocation is complete, the trustees will consider reviewing pension benefits based on actuarial advice.
“We are committed to ensuring our pensioners live in dignity. Any enhancement of benefits must be sustainable and anchored on improved investment performance,” he said.
The ongoing member engagement forums will continue across eight regions, as the scheme seeks to build consensus and transparency around one of the most significant restructuring efforts in its history.
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