Telposta pension scheme to sell Sh9.62bn property to three state agencies
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Kenya's Telposta Pension Scheme has agreed to sell four properties in Nairobi, Mombasa and Gilgil for Sh9.62 billion to three government institutions as it moves to cut its real estate exposure to within regulatory limits.
Three government institutions are set to pay a combined Sh9.62 billion for properties owned by the Telposta Pension Scheme, as the retirement fund moves to reduce its real estate exposure to within the limits set by the Retirement Benefits Authority (RBA).
The scheme's latest annual report shows that the Ministry of Information, Communications and the Digital Economy, the National Police Service and the Ministry of Defence have agreed to buy four properties in Nairobi, Mombasa and Gilgil.
The ICT ministry will pay Sh6.85 billion for Telposta Towers in Nairobi, the police Sh1.27 billion for flats in Makande and Bombolulu in Mombasa, and the Defence ministry Sh1.5 billion for staff quarters in Gilgil.
The disposals would help reduce property concentration, which accounted for 90.44 per cent of the scheme's portfolio in the year ended June 2026, up from 82.71 per cent a year earlier. That is nearly three times the 30 per cent ceiling for investments in immovable property set by the RBA.
Telposta Towers, located along Nairobi's Kenyatta Avenue, has 403,826 square feet of space across 29 floors, with 98 per cent currently occupied by government ministries. The Cabinet approved the purchase of the building on April 27, 2026, with trustees working with the ministry to finalise the payment plan and sale agreement.
The pressure to rebalance the fund's investments comes as its net assets fell to Sh13.64 billion in June 2026 from Sh14.50 billion a year earlier, while property management expenses rose 62.2 per cent to Sh892.5 million. The scheme was closed to new entrants and future benefit accruals from November 30, 2007.