The Teleposta Pension Scheme has announced plans to sell up to 70 percent of its assets, worth between Ksh.10 billion and Ksh.11 billion, from a total portfolio of Ksh.14.1 billion.
This decision is part of a strategy to improve the scheme’s liquidity and better meet the needs of its members.
The move involves selling several key property holdings, including the well-known Teleposta Towers in Nairobi. The scheme is shifting away from immovable assets like real estate toward more flexible financial instruments.
According to management, this change is designed to help members earn returns that consider the rising cost of living, noting that some members take home as little as Ksh.11,895.
The scheme plans to access new opportunities such as government-backed funds, the bond market, and other securities. Officials are optimistic that this approach will generate more revenue while complying with regulatory requirements that limit property holdings to a maximum of 30 percent of the total portfolio.
Teleposta Scheme CEO Peter Rotich explained that the rebranding and shift from property investments will benefit members.
He said that reducing property exposure from around 83 percent to roughly 35 percent will allow the scheme to review member benefits and improve payments.
Rotich emphasized that the scheme needs to be conservative because many members are older, making careful management of funds critical.
The properties set for sale include not only Teleposta Towers but also Bombolulu, Makande, Aga Khan, GTI, and other holdings.
Management noted that while property investments have historically been stable, the high costs of maintenance and administration have made them less profitable.
Only one property has been yielding close to 7 percent returns, while others have been generating negative returns of around 2 percent.
The scheme plans to complete the asset liquidation over the next two years. During this period, actuaries will be consulted to determine how the proceeds and benefits will be distributed to members.
The goal, according to Rotich, is to ensure that members get better value from their contributions while making the scheme more financially flexible.
This strategic shift reflects a broader trend among pension schemes, which are increasingly balancing the need for long-term growth with the demand for short-term liquidity.
Teleposta Pension Scheme aims to provide more reliable and responsive benefits for its members in the years ahead.
