City Hall coup on Railways land

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The Nairobi County government last month attached land belonging to retirees of the Kenya Railways Corporation over unpaid land rates, sending the former employees into a spin.

But the 18-acre Muthurwa estate has already been acquired by the Kenya Urban Roads Authority for the development of a major elevated road. The project, it says, is only a piece in a larger plan to restructure the city, to ease access. Hundreds of families who live in the estate have been given notice to vacate of be evicted forcefully

Sh8.5B

Amount the county government is claiming in unpaid rates from the Railways Pension Scheme.

City Hall is demanding more than Sh8.5 billion in unpaid rates from their pension scheme, which will likely be recovered through disposing of the railways property. The corporation’s employees also used to run the neighbouring Railways Terminus, taking the proceeds – from parking and collections from the many businesses therein – as recompense for failure by Kenya Railways to pay them salaries and retirement dues, before they were forced out by unscrupulous county officials who now run the decrepit place.

The fate of the more than 8,000 pensioners is now uncertain considering settlement of their benefits is already late.

A protest letter from the association of retirees claims that their pensioners have not been paid for five months now, who are now in stiff objection to the move. It is understood, however, that transfer of the land is already complete. Since inception of the scheme, most pending benefits have been paid using proceeds from the sale of assets, as income from the scheme’s rental houses is insufficient for that purpose, and the takeover by the county government leaves them in dire straits in regard to settlement of their dues. 

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