Kenya Railways Pension Scheme rebounds as assets hit Sh34.7bn, retirees get pay boost

Delegates during the Kenya Railways Pension Scheme on 12th Annual General Meeting held at All Saints’ Cathedral in Nairobi on December 30, 2025./HANDOUT

After a bruising year marked by losses and market uncertainty, the Kenya Railways Staff Retirement Benefits Scheme has staged a strong comeback, posting a sharp rise in assets and announcing pension increases that will directly lift retirees’ incomes.

Trustees said on Tuesday that the scheme’s net assets had grown to Sh34.7 billion, up from Sh32.8 billion last year, marking a Sh1.87 billion gain in the year ended June 30, 2025.

The turnaround reverses a Sh3.42 billion decline recorded in the previous financial year.

The results were unveiled during the scheme’s 12th Annual General Meeting held at All Saints’ Cathedral in Nairobi, where trustees presented the Annual Report and Audited Financial Statements to pensioners, beneficiaries and stakeholders.

Board chairperson Nancy Chemtai attributed the improved performance to stronger governance, closer oversight and a renewed focus on stable, long-term investments.

This rebound demonstrates the resilience of the scheme and the effectiveness of the measures we put in place to protect members’ savings,” Chemtai said.

“Despite economic uncertainties, the board remained committed to sound governance, transparency and investment decisions that prioritise sustainability.”

She said property investments remained a key growth driver, helping shield the fund from volatility in other asset classes.

Chemtai assured members that trustees were focused on the timely payment of benefits and on safeguarding the dignity and welfare of retirees.

The improved financial position has translated into concrete gains for pensioners.

Trustees resolved to increase monthly pensions by five per cent, effective January 2026, citing the scheme’s stronger asset base and positive performance.

In addition, the board approved the payment of all outstanding pension arrears amounting to Sh700 million, which will be fully cleared by January 10, 2026.

Pensioners will also benefit from a uniform adjustment of Sh2,000 across the board, raising the minimum monthly pension to Sh10,000 from January 2026.

Trustees said the measures were aimed at easing cost-of-living pressures and ensuring fairer benefit levels among members.

“Our responsibility is to ensure that members enjoy a secure and predictable income in retirement,” Chemtai said.

“We will continue to strengthen governance structures, diversify investments and manage risk prudently while improving member benefits.”

The AGM also featured briefings from partner institutions. Officials from the Social Health Authority outlined medical cover arrangements under the new national health framework, urging pensioners to update their registrations to avoid interruptions in access to healthcare services.

Members also heard from the Affordable Housing Board, which highlighted opportunities available to pensioners under the government’s affordable housing programme, including pathways to home ownership and long-term investment options.

The Kenya Railways Staff Retirement Benefits Scheme serves thousands of former and serving employees of Kenya Railways.

Trustees said the strong 2025 results position the scheme for steady growth, even as they remain cautious in the face of evolving economic and market conditions.