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{
    "id": 1027984,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1027984/?format=api",
    "text_counter": 20,
    "type": "speech",
    "speaker_name": "Sen. (Dr.) Mbito",
    "speaker_title": "",
    "speaker": {
        "id": 13225,
        "legal_name": "Michael Maling'a Mbito",
        "slug": "michael-malinga-mbito"
    },
    "content": "We, the undersigned citizens of the Republic of Kenya and residents of Nairobi City County, representing more than 10,000 pensioners across the country, draw the attention of the Senate to the following- (1) Kenya Railways Staff Retirement Benefits Scheme was set up through a trust deed signed on 3rd May, 2016, to provide pension and other retirement benefits to employees of Kenya Railways Corporation. (2) That the trustees were to hold the contributions paid to them by the sponsor; that is the Kenya Railways Corporation, and pay members in accordance with the provisions of its trust deed and rules. (3) That the scheme currently holds about 99 per cent of its total assets in immovable property that is, land and buildings as per the Legal Notice No.169 of 2006 transferred to it by the sponsor. (4) That the Retirement Benefits Authority, a regulatory body, allows a maximum investment of 30 per cent of the Scheme’s fund in immovable property which signifies that the Scheme is not in compliance with the stipulated regulations. Secondly, on governance issues in the management of the Scheme affairs. At inception, it was envisaged that the Scheme would have challenges in liquidity and compliance with Retirement Benefits Authority (RBA) requirements of 30 to 70 per cent ratio due to the transferred assets being 100 per cent. That in realization of this challenge, the sponsor appointed a carefully selected team of experts to form the board of trustees to address this issue. That the board of trustees drafted a well designed integrated strategic plan which gave a clear road map on how the scheme would grow and comply with RBA regulations within determined timelines. That due to designs of greed and desire to profit from prime land transferred to the scheme, the board of trustees were unceremoniously disbanded having resisted to be enjoined in the golf city project propagated by the sponsor, which finally collapsed. Thirdly, irregular and unconstitutional practices, including corruption and abuse of office: That after disbanding of the Board of Trustees that was instituted earlier, another one was put in place, which unfortunately consisted of people who systematically stripped the scheme’s assets through unscrupulous sell of assets, some through private treaties at exceedingly low market rates. That RBA on its regulatory mandate, dissolved the board of trustees after members of the scheme sought its intervention. That RBA subsequently appointed an inspection team which gave their findings on 14th November, 2011, which states in part: “The scheme was fraught with corruption, breach of trust, abuse of office, fraudulent disposal of assets and other malpractices.” The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor, Senate."
}