Telposta embarks on property disposals to unlock capital in a challenging market

TelPosta Pension Scheme is trading off its assets through possible sale-and-leaseback agreements to boost liquidity amid high leverage and margin pressures, as the 27-year-old fund seeks to generate cash through property disposals.

The firm’s management said Tuesday that the decision will help unlock capital in a challenging market and strengthen its balance sheet.

“These forums mark the beginning of a renewed commitment to our members. We want to ensure that they clearly understand their benefits, how the Scheme is managed, and the steps we are taking to strengthen service delivery and long-term sustainability,” said Telposta Pension Scheme’s Administrator and Trust Secretary, Peter Rotich.

He spoke during the unveiling of a new brand identity, as well as the launch of a nationwide Member Education initiative as part of a broader transformation “aimed at strengthening transparency, improving service delivery, and deepening engagement with its members.”

The strategy, he said, will allow the scheme to unlock capital tied up in fixed assets, improve liquidity to fund growth, and meet its monthly obligations to paying members, without interrupting operations.

Peter Rotich, the Scheme’s Administrator and Trust Secretary, noted that the concept is widely practiced with several investment funds managing liquidity by holding buffers, including cash and government bonds, or by employing ‘swing pricing’ to manage costs during high redemption times – even though the Scheme has a surplus of KES 1.704 billion.

It means, for every KES 100 the Scheme owes in promised pensions, it holds KES 115.60 in assets.

“It means the Trustees may – where appropriate and approved – consider options such as pension increases or bonus payments to members,” said Rotich.

The scheme’s chunk of money is tied up in property, which represents about 80 percent of the scheme’s total investments, way above the Retirement Benefits Authority (RBA) recommendations of no more than 30 percent in property.

RBA has been strengthening its rules around liquidity management to ensure that funds holding fewer liquid assets can still meet investor demands.

Too much property concentration means it can be harder to access cash quickly to pay pensions. Rotich, however, noted that trustees, guided by transaction advisors, have approved a structured plan to gradually sell selected properties and reinvest in a better-balanced portfolio.

According to the firm, the move is a careful, planned process, “not a rushed or forced sale, assuring its members that their monthly income will continue without interruption. “This adjustment is about improving the Scheme’s long-term health so it can serve you and future beneficiaries even better,” noted Rotich.

“Under the improved service culture, the Scheme is placing greater emphasis on faster response times to member inquiries, clearer communication about benefits and processes, and more accessible customer support channels,” he said.

He added that the Scheme is also strengthening staff training to ensure members receive timely, professional, and empathetic assistance whenever they seek information or support.

In addition, the Scheme is modernizing internal systems and operational processes to improve efficiency in benefit processing, record management, and member communication. These improvements are expected to reduce processing timelines while enhancing transparency and accountability in the administration of pension benefits.

The nationwide Member Education Forums will be held across several regions, including Kisumu, Eldoret, Nakuru, Nyeri, Machakos, and Mombasa. The sessions will provide members with updates on pension payments, investment performance, property portfolio management, and strategies being implemented to ensure the Scheme’s long-term sustainability.

The initiative follows a comprehensive member survey and benchmarking exercise that identified the need for stronger communication, faster benefit processing, and improved accessibility to Scheme services.

“Behind every pension payment is a household that depends on it,” Cheptiony added. “Our responsibility is to serve our members with professionalism, efficiency, and respect while safeguarding the long-term sustainability of the Scheme.”