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Property-rich pension funds experience cash flow problems

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Kenya Railways Staff Retirement Benefits Scheme pensioners protest outside Treasury, Nairobi, in March 2022. [Edward Kiplimo, Standard]

The cash flow crunch being faced by some of the country's property-rich pension schemes could deepen on the back of the legal hurdles when disposing of their real estate assets, collecting rent and delays by their sponsors to remit pension dues.

These schemes are closed to new members and do not receive new contributions. As such, they solely depend on the sale of properties and rent collections.

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