MOMBASA, Kenya – TelPosta Pension Scheme has begun evicting tenants from its properties in Mombasa after a court ruling allowed it to reclaim units from occupants who have allegedly failed to pay rent for over a decade.
The pension fund, which manages the retirement benefits of over 8,000 former employees of the defunct Kenya Posts and Telecommunications Corporation, said tenants at its Makande and Bombolulu estates had accrued rent arrears exceeding KSh 79 million as of July 2024.
Some tenants had reportedly lived in the properties without paying rent since 2012.
Following a court decision on November 27, 2024, the scheme moved to enforce the eviction orders last Thursday at Makande Posta Flats.
The ruling had directed tenants to vacate voluntarily, failing which the scheme was authorized to remove them.
“Based on evidence on record and after considering the submissions made herein, the court finds and holds that the plaintiff (TelPosta Pension Scheme) has proved its case against the defendants,” the judgment read in part.
The pension scheme’s CEO, Peter Rotich, stated that many of the affected tenants had sublet the houses without remitting rent to the scheme.
“Some of these properties are in prime locations, yet they have not been generating revenue for the pensioners due to non-paying occupants,” he noted.
A two-bedroom unit at Makande Posta Flats was priced at KSh 6,100 per month—significantly lower than comparable properties in nearby areas like Tudor and Makupa, where similar units go for between KSh 13,000 and KSh 25,000.
The case dates back to 2008, when former employees of Telkom Kenya Limited went to court, challenging the pension scheme’s attempt to enforce void sale agreements—contracts that lacked legal standing.
However, with the latest court ruling, the scheme appears determined to recover its properties and potentially reposition them for better returns.
The pension fund also owns properties in Nairobi and Kisumu, where similar cases of unpaid rent have been reported, raising questions about its ability to manage and maximize returns on its real estate assets.
