The Ethics and Anti-Corruption Commission (EACC) has launched an investigation into senior officials of the Kenya Railways Corporation (KRC) over the alleged mismanagement of Ksh8 billion meant for retirees. The probe focuses on the Kenya Railways Staff Retirement Benefits Scheme (KRSRBS) and its involvement in the irregular sale of 139 acres of land in Makongeni, Nairobi.
Irregular Land Sale Under Scrutiny
EACC’s latest report on financial statements and activities for the 2023/2024 financial year confirms the ongoing investigation into KRSRBS. The scheme, which manages pension and retirement benefits for former KRC employees and provides financial support to the dependents of deceased workers, is one of 534 cases under review for corruption, economic crimes, bribery, and unethical conduct.
According to the report, the KRSRBS CEO oversaw the irregular disposal of Land L.R No. 209/6829, measuring 139 acres, during the financial years 2021/2022 and 2022/2023. The transaction, valued at Ksh8 billion, has raised concerns over transparency and accountability.
Pensioners’ Complaints Trigger Investigation
The investigation follows complaints from Kenya Railways pensioners in 2023, who alleged that a senior government official attempted to seize the land for residential flat construction. Since 2020, KRSRBS has advocated for its 7,000 members to benefit from the government’s affordable housing program, which aims to deliver 20,000 housing units.
This is not the first inquiry into KRSRBS’s financial dealings. Five years ago, the Directorate of Criminal Investigations (DCI) launched an investigation into the sale of prime properties worth billions. The probe focused on how KRC allegedly sold these assets at significantly reduced prices to the lowest bidders, who later resold them at a profit.
National Assembly Orders Pension Payments
EACC’s report comes two months after the National Assembly’s Public Petitions Committee, chaired by Kitui East MP Nimrod Mbai, directed KRC to expedite outstanding pension payments to former employees. The directive followed a petition by Benson Mocheo, a former KRC station manager who served for 17 years from January 8, 1968, and has yet to receive his pension.
The committee urged KRC to take administrative action against officers responsible for delays in pension processing. The report instructs Kenya Railways Corporation to clear Mocheo’s pension within 30 days of the report being tabled. Mocheo further called on lawmakers to hold accountable those responsible for pension violations, highlighting his prolonged struggle to access his rightful benefits.
Auditor General Flags Governance Issues
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 trust deed regulations. She noted that the Board of Trustees had remained in office since the scheme’s establishment in June 2017, despite a rule limiting their term to a maximum of three years.
“The Board of Trustees served for more than six years, violating Clause 7 (h) of the Trust Deed and Rules, which states that unless removed from office, trustees may serve only one additional three-year term,” the report states.
KRSRBS management attributed the delay in holding elections to the absence of an election manual. They stated that a draft manual was under development but had not yet received approval at the time of the audit.
