"The transfer of the assets was approved by the cabinet and ministry of transport and gazetted on September 7 the last year." Kithinji said. The World Bank, he added, had provided Sh1.4 billion to settle the lump sum payment of those who are being retrenched adding the payments are set to start at the end of this month. However, he said that the board will not directly receive the money, but would be involved in identifying the liabilities that need to be paid.
The short term funds from the World Bank would be used to pay pensioners for six months up to July when it's expected that the assets will have generated funds through rent and sale of some of them.
"We have inherited brick, and we have no cash. This short-term fund will enable the pension scheme to settle the workers payments until July." He said the scheme was currently making monthly payments of between Sh32 million to Sh35 million, adding that after July this was expected to shoot up to Sh52 million.
Kithinji said the scheme was faced with the immediate challenge of meeting the stipulated ratio between real estate that should constitute 30 per cent, and convertible capital of 70 per cent, which should either be in cash or shares.
Part of the property is the 15-acre Muthurwa estate grounds that are to be developed into a hawkers' market by the Government. The government has offered Sh40 million per acre, but acting managing director, engineer Vitalis Ongonga said negotiations were still going on.
Kenya Railways chairman Jonathan Mturi, who handed over the assets said this was a comprehensive pension scheme with all entitlements and benefits for the workers.
"We are confident and satisfied that the management of the pension scheme is in competent hands."
Source: The Nation
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