TelPosta Pension Scheme Administrator and Trust Secretary Peter Rotich addresses members during a forum in Nairobi on March 17, 2026, outlining plans to exit property investments and improve pension payouts.
By Peace Muthoka
Nairobi, March 17, 2026 – The TelPosta Pension Scheme has unveiled a bold transformation plan that promises higher pension payouts, greater transparency, and a stronger focus on members, as it moves to unlock billions of shillings tied up in property investments.
Speaking during the launch of nationwide member education forums in Nairobi, Scheme Administrator and Trust Secretary Peter Rotich admitted the fund has faced significant financial constraints over the years, but assured members that decisive steps are now underway to turn things around.
Rotich said the Scheme has grown its asset base from Sh8 billion in 2008—when the government injected funds and closed the scheme—to about Sh14.5 billion today. However, he noted that much of this wealth remains locked in property, limiting the Scheme’s ability to generate steady income and improve monthly pension payments.
“That was quite an underfunding at the time, but we have made progress over the years. Now, the focus is on helping our members understand where we have come from and where we are going,” said Rotich.
At the heart of the transformation is a major shift in investment strategy, with the Scheme planning to exit its heavy reliance on real estate and channel funds into more liquid and higher-yielding assets.
Currently, about 83 percent of the Scheme’s assets are held in property—far above regulatory recommendations. This, officials say, has led to low returns, with some residential properties generating negative yields while incurring high maintenance and administrative costs.
“We had to make a difficult decision,” Rotich explained. “Some of our properties were giving returns as low as negative two percent, while only one performed at about seven percent. That is not sustainable for a pension scheme.”
To address this, the Scheme has begun disposing of its property portfolio following approval from the National Treasury in December 2024. The approval came with strict conditions, including the need for independent valuation, prioritization of government institutions as buyers, and a fully transparent disposal process.
Chairman of the Board of Trustees Julius Cheptiony said the process is already underway, with several properties advertised in phases since last year.
TelPosta Pension Scheme Board Chairman Julius Cheptiony speaks during a member education forum in Nairobi on March 17, 2026, highlighting plans to unlock property assets and boost pension benefits.
“We received a very positive response from the market,” Cheptiony said. “This gives us confidence that we will successfully exit the property space and convert these assets into liquid funds.”
The Scheme expects to raise close to Sh10 billion from the sale of properties, funds that will be reinvested across diversified portfolios such as government bonds, equities, infrastructure funds, and other pension-backed investment vehicles.
Cheptiony emphasized that the shift is not just about selling assets, but about repositioning the Scheme to better serve its aging membership.
“Our members have an average age of about 70 years. At this stage, liquidity is everything,” he said. “We cannot afford to lock their benefits in long-term or underperforming assets.”
He added that the Scheme currently pays out nearly Sh1 billion annually to pensioners, but the lack of liquidity has limited its ability to increase monthly payouts—many of which remain below Sh10,000.
“That is not enough to live on, especially with the rising cost of living. Our goal is to uplift these members and give them dignity in retirement,” Cheptiony said.
Once the property sales are completed and funds reinvested, actuaries will conduct valuations to determine how much pensions can be increased, including the possibility of introducing a new minimum pension threshold.
While no specific figures have been announced, officials expressed confidence that the changes will significantly improve member benefits.
The transformation also includes a rebranding of the Scheme, signaling a cultural shift toward a more member-centered approach. The new identity emphasizes listening to members, improving communication, and delivering faster, more efficient services.
Rotich said the rebrand is not just cosmetic, but reflects a deeper commitment to putting members at the center of every decision.
“We are building a service culture where members feel heard, valued, and supported,” he said. “That is why we are engaging them directly through these forums.”
The nationwide member education forums aim to provide a platform for open dialogue, allowing members to ask questions, raise concerns, and better understand how the Scheme is being managed.
Unlike annual general meetings, which follow strict agendas, these sessions are designed to encourage free interaction and transparency.
“We want our members to engage us openly,” Rotich said. “This is their Scheme, and they deserve to know exactly what is happening.”
The forums will be held across major towns, including Kisumu, Eldoret, Nakuru, Nyeri, Machakos, and Mombasa, as part of efforts to reach members across the country.
Officials say the move follows feedback from members who called for better communication, faster service delivery, and greater accountability.
As the Scheme embarks on this new chapter, leaders insist the ultimate goal is clear—ensuring that every pensioner receives reliable, meaningful income in retirement.
“Behind every pension payment is a life that depends on it,” Cheptiony said. “Our duty is to protect that future, improve it, and restore confidence in the Scheme.”
With billions set to be unlocked and a new strategy in motion, the TelPosta Pension Scheme is now betting on transparency, diversification, and member trust to secure a more stable and dignified future for its pensioners.
