Kenyan government bodies agree to buy Telposta Pension Scheme properties for KES 9.62bn

Three Kenyan government bodies have agreed to buy properties from the Telposta Pension Scheme for a combined KES 9.62 billion (about US$74 million), Business Daily reported on 10 October 2026, citing the scheme's latest annual report.

The Ministry of Information, Communications and the Digital Economy, the ICT ministry, has agreed to buy Telposta Towers on Kenyatta Avenue in Nairobi for KES 6.85 billion (about US$52.7 million), the paper said. The National Police Service is to pay KES 1.27 billion for 100 flats in Makande and 88 in Bombolulu in Mombasa, financed over three financial years. The Ministry of Defence is to pay KES 1.5 billion for the Gilgil GTI staff quarters, which have 174 rental units and 68 acres of undeveloped land. It is to pay in three instalments of KES 500 million, due on 31 October 2026, 31 January 2027 and 31 July 2027.

The Cabinet approved the purchase of Telposta Towers on 27 April 2026, according to Business Daily, but the scheme's trustees are still finalising a payment plan and the sale agreement. The dollar figures use the Central Bank of Kenya rate of KES 129.91 to the dollar, posted on 9 October 2026.

Business Daily described the tower as a 29-floor building with 403,826 square feet of space, 98% of it occupied by government ministries.

Property made up 90.44% of the scheme's portfolio in the year ended June 2026, up from 82.71% a year earlier, Business Daily reported. The Retirement Benefits Authority (RBA) caps pension schemes' exposure to immovable property at 30%. The paper said the scheme is selling the properties to cut its real estate exposure to within the RBA limits.

The scheme closed to new members and future accrual of benefits on 30 November 2007, Business Daily reported. In an article on 11 August 2026, the paper reported that the scheme had more than 5,000 members, nearly 84% of them aged 60 to 79, and paid an average monthly benefit of KES 11,895. Scheme Administrator Peter Rotich said at the time, as quoted by Business Daily, that the plan was to review payouts once the scheme had completed its exit from major property holdings, and that trustees would take advice from actuaries.