Senate Labour Committee Presses Treasury to Act on Kenya Railways Pension Arrears

 

The Senate Committee on Labour and Social Welfare has renewed pressure on the National Treasury to release long-delayed pension arrears owed to thousands of former Kenya Railways employees, following years of financial distress among retirees.

During a meeting at Bunge Tower on Thursday, the committee—chaired by Sen. Julius Murgor (West Pokot)—received a joint report from the Kenya Railways Corporation (KRC), the Kenya Railways Staff Retirement Benefits Scheme (KRSRBS), and representatives of the pensioners outlining a finalised reconciliation of accounts. The report confirmed that only Treasury’s release of funds now stands between the retirees and long-overdue payments.

According to KRC Managing Director Philip Mainga, pension arrears totaling KSh 2.387 billion had accumulated by October 31, 2025. He said the scheme intends to settle these payments once the Treasury disburses KSh 2.264 billion from the acquisition of the Nairobi Railway Club land by the Kenya National Highways Authority (KeNHA).

“We have concluded all reconciliation work and identified the source of funds. We now urge Treasury to expedite the release so that pensioners can finally receive their dues,” Mainga told senators.

However, senators raised concerns about the shortfall between what is owed and what Treasury is expected to release. Sen. Joe Nyutu (Murang’a) and Sen. Miraj Abdullahi both sought clarification on how the gap would be covered and how future delays could be prevented.

In response, Mainga revealed a broader stabilisation plan set to begin in February 2026, which includes liquidating under-utilised assets—such as KSh 8 billion worth of property in Makongeni—to reinvest proceeds in government bonds and other income-generating ventures. He also noted that KURA and the former Ministry of Devolution still owe the scheme millions from earlier land deals in Muthurwa.

Sen. Seki Lenku (Kajiado) urged the committee to summon the Cabinet Secretary for the National Treasury or obtain a written commitment specifying when the funds will be released.

“When that money comes, it must go directly to the pensioners,” Lenku warned. “We don’t want to hear that it has been diverted to another activity.”

Lead petitioner Rodgers Washika made an emotional appeal to the committee, reminding them of the human toll of the delays.

“We are dealing with vulnerable pensioners—the oldest is 90 years old, and the average age is 75. Many are ailing and struggling to afford medicine. We need Treasury to act,” he pleaded.

In closing, Sen. Murgor assured the pensioners that the committee would maintain oversight until every shilling reached its rightful recipients.

“This committee will not relent. The dignity of Kenya’s railway workers must be restored,” he affirmed, thanking the tripartite team for crafting a roadmap toward long-term financial stability for the retirees.

If the Treasury acts promptly, the long-awaited disbursement could finally bring relief to hundreds of ageing railway pensioners who have waited years for their dues.