Anti-graft agency probe Kenya Railways top officials
By George Kebaso, February 3, 2025The Ethics and Anti-Corruption Commission (EACC) is investigating how top officials of the Kenya Railways Corporation (KRC) mismanaged Sh8 billion meant for retirees.
In its latest report related to activities and financial statements for the financial year 2023/2024, the commission said it is investigating the Kenya Railways Staff Retirement Benefits Scheme (KRSRBS) irregularly sold land measuring 139 acres in Makongeni, Nairobi.
KRSRBS provides pension and other retirement benefits for former employees upon their retirement from KRC and relief for the dependents of the deceased employees.
The entity is among 534 cases that EACC is investigating for corruption, economic crimes, bribery and unethical conduct.
Reads the report: “Inquiry into allegations of irregular disposal of Land L.R No. 209/6829, measuring 139 acres in Makongeni, Nairobi by the CEO, KRSRBS in FYs 2021/2022 and 2022/2023. Amount (KESS) 8,000,000,000.”
The investigations came after in 2023 Kenya Railways Pensioners raised concerns that the said land was under invasion by a senior government official who wanted to grab the 139 acres to put up residential flats.
Kenya Railways Staff Retirement Benefits Scheme has from 2020 been pushing for its 7,000 members to benefit from 20,000 houses low-cost housing units the Government has been constructing.
Five years ago, the Directorate of Criminal Investigations (DCI) opened a probe into the alleged sale of prime properties worth billions of shillings belonging to the scheme.
The investigations centred on a number of prime assets after KRC offered them at discounted prices, which were allegedly taken by the lowest bidders who later resold the assets to the highest bidders.
The EACC report comes hardly two months after MPs who sit in the public Petitions committee chaired by Kitui East MP Nimrod Mbai, also directed KRC to fast-track payment of pending pensions owed to its former employees, following a petition filed by Benson Mocheo on behalf of other who claimed that despite working for Kenya Railways Corporation (KRC) for 17 years from January 8, 1968, to April as a station manager on permanent and pensionable terms has not been paid his pension dues.
In particular, the committee directed the Corporation to initiate administrative procedures to identify and deal with any negligence or fault by the officers responsible for processing the Pension.
Reads the report: “The Committee recommends that the Kenya Railways Corporation promptly and adequately pays the pension owed to Mocheo for his seventeen (17) years of service within thirty (30) days of the report being tabled.”
Mocheo in his petition wanted the lawmakers to recommend action to be taken against all those involved in the violation as he has been unable to access his due.
Auditor General Nancy Gathungu in her report of the controller of budget the staff retirement benefits scheme for the year ended, 2023 raised concerns over non-compliance with the trust deed and rules on appointment of the board of members of trustees.
Gathungu regretted that the Board of Trustees have been in office since the establishment of the retirement scheme in June 2017.