Three Kenyan government ministries have committed to purchase four real-estate assets from the Telposta Pension Scheme for a total of KSh9.62 billion.

The Ministry of Information, Communications and the Digital Economy will acquire the Telposta Towers in Nairobi for KSh6.85 billion. The tower, situated on Kenyatta Avenue, offers 403,826 sq ft across 29 floors and is currently 98 per cent occupied by government departments.

The National Police Service will buy 100 flats in Makande and 88 flats in Bombolulu, Mombasa, for KSh1.27 billion. The acquisition will be funded over three financial years.

The Ministry of Defence will purchase the Gilgil staff quarters for KSh1.5 billion. The Gilgil site contains 174 rental units and 68 acres of undeveloped land, with payment to be made in three instalments of KSh500 million on October 31, 2026, January 31, 2027 and July 31, 2027.

The purchases aim to lower the scheme’s property exposure, which accounted for 90.44 per cent of its portfolio at the end of June 2026, well above the Retirement Benefits Authority’s 30 per cent limit.

Reducing the concentration is expected to diversify the fund’s holdings, improve liquidity and lessen reliance on real estate to meet pension liabilities.

The Cabinet gave approval for the Telposta Towers transaction on April 27, 2026, and trustees of the scheme said they are finalising the payment schedule and sale agreement after a series of meetings with the buyers.

The scheme’s net assets declined to KSh13.64 billion in June 2026 from KSh14.50 billion a year earlier, while investment income remained around KSh986.5 million.

Property-related costs rose sharply, with management expenses increasing 62.2 per cent to KSh892.5 million and repair, refurbishment and utilities spending climbing eight-fold to KSh403.76 million. Pre-disposal expenses also grew 26 per cent to KSh182.97 million.

The Telposta Pension Scheme, closed to new members since November 30, 2007, now has about 84 per cent of its members aged between 60 and 79, underscoring the need for more liquid assets.

When the fund was converted into a closed scheme, the State contributed KSh8 billion, and KSh3.7 billion was paid out to members who transferred to successor schemes.