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Railways’ property seized in debt row

JARED NYATAYA | NATION

From right: Johnson Miano, Chairman, Kenya Railways Retirees Association, John Lucheta, member of the association and John Kibunga, Board member, when they visited the Nation Centre on February 10, 2012, concerning a raid by auctioneers at the Kenya Railways Staff Retirement Benefits Scheme offices in Nairobi, where furniture was taken away earlier in the day. The raid was due to failure to pay a debt of Sh9.7 million arising from a suit filed by one of the retirees who sued trustees of the scheme for not paying their pension on time.

What you need to know:

  • Auctioneers raid offices of pension scheme and take away valuable assets

Auctioneers raided the troubled Kenya Railways Retirement Scheme over a Sh9.7 million debt owed to four pensioners.

They took away 50 computers, photocopiers, printers, telephone receivers and furniture.

By Sunday, all the offices had been swept clean by the auctioneers.

The scheme’s vehicles were also attached.

The letter of decree from the auctioneer was dated November 17, 2011.

“At the expiry of the seven-days notice period, the moveable property described in this schedule will be moved to the auctioneers premises and sold by public auction,” the letter, written by Stanley Mugacha, trading as Galaxy Auctioneers, said.

The letter listed the chairman of the scheme, Ms Beryl Odinga, a sister of Prime Minister Raila Odinga, as one of the debtors who had failed to pay Mr Robert Azariah and three others the amount.

Recently, the State terminated cases of abuse of office against Ms Odinga, Ms Caroline Nyororo, Mr Ephantus Muriithi Githui and Mr Mathew Kipchumba. (READ: Audit cleared Odinga sister, DPP told)

They had been accused of conferring Sh2.1 million to Ms Odinga for her personal use between March 2009 and January 2011.

By Sunday evening, the acting chief executive of the scheme, Mr Nicholas Kikuvi said they had paid Sh3.5 million to save their property.

Repayment deal

They had also reached an agreement with the auctioneer to settle the remaining amount in three instalments.

“The debt arose due to a court case in which trustees of the scheme were sued but we have reached an agreement with the auctioneer,” Mr Kikuvi said.

The chairman of Kenya Railways Retirees Association Johnson Miano said the scheme was poorly managed and last year, they had passed a motion of no-confidence in the board led by Ms Odinga.