Teleposter Pension Scheme Intensifies Member Engagement on Multi-Billion Asset Disposal Plan

 The Teleposter Pension Scheme has launched an extensive member education campaign across the country as it undertakes a major strategic shift aimed at improving returns, enhancing liquidity, and securing the long-term sustainability of the fund.

During an interactive forum held in Uasin Gishu County, the scheme’s Administrator and Trust Secretary, Peter Rotich, led a detailed engagement session with pensioners, explaining the rationale behind the planned disposal of property assets and the transition toward more flexible and higher-yielding investments.

The meeting forms part of a broader outreach initiative targeting eight regions nationwide, following the scheme’s Annual General Meeting held on December 10. Unlike AGMs, which follow a fixed agenda, the member education forums are designed to foster open dialogue, giving pensioners an opportunity to ask questions, raise concerns, and better understand how their retirement savings are being managed.

“We are here to fulfill our statutory obligation of member education, but more importantly, to engage openly with our pensioners. These sessions allow us to explain our journey, our challenges, and the strategic direction we are taking as a scheme,” Rotich said.

At the center of the discussions was the scheme’s plan to “de-risk” its investment portfolio, which is currently heavily concentrated in property. According to Rotich, property holdings make up approximately 83 percent of the scheme’s assets—far exceeding the 30 percent threshold recommended by the Retirement Benefits Authority (RBA).

He noted that such overexposure to property presents significant risks, particularly due to the illiquid nature of real estate investments, which are difficult to dispose of quickly in times of need.

“De-risking does not mean selling everything blindly. It means moving away from investments that are difficult to exit and reallocating those funds into assets that are more flexible, more liquid, and capable of generating better returns,” he explained.

The turning point for this strategy came on December 16, 2024, when the scheme received formal approval from the National Treasury to begin disposing of its property holdings. This approval followed years of deliberations and compliance processes, marking a significant milestone in the scheme’s transformation journey.

Since then, the scheme has conducted valuations of its assets and initiated the process of placing several properties on the market. The first advertisement for the sale of assets was issued in October last year, signaling the start of what is expected to be a phased disposal process spanning one to two years.

Rotich revealed that some of the scheme’s residential properties have been generating negative returns due to high maintenance costs, low rental yields, and administrative expenses. Even high-value commercial properties, while stable, have not delivered returns comparable to alternative investment options currently available in the market.

“For instance, while some of our commercial properties yield about seven to eight percent annually, government securities such as Treasury bills and bonds are currently offering returns of between 13 and 14 percent. This presents a clear opportunity for us to improve our earnings,” he noted.

The scheme anticipates raising billions of shillings from the disposal of its assets, including residential units and prime commercial properties. Part of these funds is expected to be reinvested in equities at the Nairobi Securities Exchange, government securities, and other high-yield investment vehicles.

In addition, Rotich indicated that the scheme is exploring opportunities in infrastructure financing, including participation in national development funds. Such investments, he said, would not only generate competitive returns but also contribute to the country’s economic growth.

“We want to position our pension scheme as a key player in impact investment. By investing in infrastructure, we are not only securing returns for our members but also contributing to national development,” he added.

Members who attended the forum expressed cautious optimism about the proposed changes, with many acknowledging the need for reform given the current performance of the scheme’s assets.

Artoso Ruto, a long-serving pensioner, supported the move, noting that the scheme’s closed nature—where no new members are contributing—makes it essential to maximize returns from existing investments.

“Our scheme no longer receives new contributions, so we must ensure that the resources we have are invested wisely. Many of the properties are not generating enough income, and some have even become liabilities. This move is necessary to sustain the scheme,” he said.

Ruto also pointed out challenges that have affected property management, including legal disputes, land ownership conflicts, and encroachment issues, which have increased operational costs and reduced profitability.

 

“These cases require court processes, which consume time and money. By disposing of such properties, we can eliminate these challenges and focus on more productive investments,” he added.

Another pensioner, Elizabeth Kitany, shared her personal experience, noting that while the scheme has been consistent in paying pensions on time, the amounts received are often insufficient to meet the rising cost of living.

“I have never missed my pension, and I am grateful for that. However, it is quite modest, and at my age, I depend on it entirely. I hope that with these changes, the pension will be increased so that we can live more comfortably,” she said.

Kitanny expressed hope that the restructuring would lead to improved benefits, including higher monthly payouts and better support for dependents.

Rotich assured members that once the asset reallocation process is complete, the scheme will consider reviewing pension benefits based on actuarial advice. Possible measures include increasing the annual pension increment, which currently stands at three percent, raising minimum pension thresholds, and enhancing dependent benefits.

“We are committed to ensuring that our pensioners live in dignity. Reviewing benefits is a key priority, but it must be done sustainably, based on the performance of our investments,” he emphasized.

He further reiterated that the scheme has maintained a strong record of timely pension payments and remains financially stable despite the challenges it faces.

The ongoing member education forums are expected to continue across the remaining regions in the coming weeks, providing more pensioners with an opportunity to engage directly with trustees and administrators.

As the Teleposter Pension Scheme embarks on this transformative journey, its leadership remains confident that the strategic shift will not only strengthen the fund’s financial position but also deliver improved and sustainable benefits to thousands of retirees who depend on it for their livelihoods.