The report states: “Inquiry into allegations of irregular disposal of Land L.R No. 209/6829, measuring 139 acres in Makongeni, Nairobi, by the CEO of KRSRBS in the financial years 2021/2022 and 2022/2023. Amount involved: Sh8,000,000,000.” The probe follows concerns raised in 2023 by Kenya Railways pensioners, who alleged that a senior government official attempted to seize the land for the construction of residential flats. Since 2020, KRSRBS has been advocating for its 7,000 members to benefit from the government’s low-cost housing program, which aims to deliver 20,000 housing units
The Ethics and Anti-Corruption Commission (EACC) is investigating senior officials of the Kenya Railways Corporation (KRC) over the alleged mismanagement of Sh8 billion meant for retirees. In its latest report on financial statements and activities for the 2023/2024 financial year, EACC revealed an ongoing probe into the Kenya Railways Staff Retirement Benefits Scheme (KRSRBS) over the irregular sale of 139 acres of land in Makongeni, Nairobi.
KRSRBS is responsible for providing pension and other retirement benefits to former KRC employees and financial relief to the dependents of deceased workers. The entity is among 534 cases currently under investigation for corruption, economic crimes, bribery, and unethical conduct.
The report states: “Inquiry into allegations of irregular disposal of Land L.R No. 209/6829, measuring 139 acres in Makongeni, Nairobi, by the CEO, KRSRBS, in the financial years 2021/2022 and 2022/2023. Amount involved: Sh8,000,000,000.”
The probe follows concerns raised in 2023 by Kenya Railways pensioners, who alleged that a senior government official attempted to grab the land for the construction of residential flats. Since 2020, KRSRBS has been advocating for its 7,000 members to benefit from the government’s low-cost housing program, which aims to deliver 20,000 housing units.
Previous Investigations and Parliamentary Intervention
The Directorate of Criminal Investigations (DCI) had previously launched an inquiry five years ago into the sale of prime properties worth billions belonging to the scheme. The investigations focused on how KRC allegedly sold these assets at discounted prices to the lowest bidders, who later resold them for profit.
EACC’s latest report comes just two months after the National Assembly’s Public Petitions Committee, chaired by Kitui East MP Nimrod Mbai, directed KRC to expedite pending pension payments to former employees. The directive followed a petition filed by Benson Mocheo, who served as a KRC station manager from January 8, 1968, to April (year unspecified) but has yet to receive his pension.
The committee recommended that KRC take administrative action against any officers responsible for delays in processing pension payments.
The report states: “The Committee recommends that the Kenya Railways Corporation promptly and adequately pays the pension owed to Mocheo for his seventeen (17) years of service within thirty (30) days of the report being tabled.” Mocheo further urged lawmakers to take action against those responsible for the pension violations, citing his prolonged struggle to access his rightful benefits.
Auditor General’s Concerns Over KRSRBS Governance
Auditor General Nancy Gathungu, in her report on the Controller of Budget Staff Retirement Benefits Scheme for the year ending 2023, raised concerns over non-compliance with the trust deed and rules governing the appointment of trustees. She noted that the Board of Trustees had remained in office since the scheme’s establishment in June 2017, despite the requirement that trustees serve a maximum term of three years.
The report states: “Therefore, the Board of Trustees served more than six years, contrary to Clause 7 (h) of the Trust Deed and Rules, which stipulates that unless removed from office, trustees shall serve for a further period of three (3) years only. In the circumstances, the Board of Trustees was in breach of the Trust Deed and Rules.”
The management attributed the delay in holding elections to the absence of an election manual, stating that a draft manual was in development but had yet to receive approval at the time of the audit.
