The Telposta Pension Scheme is in talks with three government agencies to sell investment properties worth KSh9.62 billion in total, according to its annual report and financial statements for the year ended June 30, 2026.
The proposed sales involve Telposta Towers, Makande-Bombolulu properties in Mombasa and a property in Gilgil, with the Ministry of Information, Communications and the Digital Economy, the National Police Service (NPS) and the Ministry of Defence lined up as prospective buyers.
Telposta scheme’s trustees said discussions with the government buyers had advanced, although the transactions were at different stages of completion.
“The trustees held a series of meetings with the prospective buyer and are in the process of finalizing a payment plan and executing the sale agreement,” the report states regarding Telposta Towers.
ICT Ministry Agrees to Buy Telposta Towers for KSh6.85 Billion
The Government of Kenya, through the Ministry of Information, Communications and the Digital Economy, has expressed interest in acquiring Telposta Towers for KSh6.85 billion, exclusive of taxes.
According to the report, the ministry worked with the National Treasury and the Office of the Attorney General in November 2025 to prepare a joint Cabinet memorandum seeking approval for the purchase.
The Cabinet approved the proposed acquisition on April 27, 2026.
The trustees said they have since held several meetings with the prospective buyer to finalize the payment plan and sale agreement.
Also Read: Teleposta Towers: The Kenyan Skyscraper That Beat KICC to Become Country’s Tallest Landmark
National Police Service Targets KSh1.27 Billion Mombasa Properties
The National Police Service has expressed interest in purchasing the Makande-Bombolulu properties for KSh1.27 billion.
The proposed acquisition is expected to be financed over three financial years under the Medium-Term Expenditure Framework.
However, the trustees disclosed that no sale agreement had been signed and no payments had been made by the end of the reporting period.
Despite the outstanding steps, the scheme expects the transaction to proceed.
Defence Ministry Negotiates KSh1.5 Billion Gilgil Deal
Meanwhile, the Ministry of Defence is also in advanced negotiations to acquire the pension scheme’s Gilgil property for KSh1.5 billion.
The trustees have accepted the proposed purchase price, which is to be paid in three equal instalments.
According to the report, the payments are scheduled for October 31, 2026, January 31, 2027, and July 31, 2027.
Each instalment would amount to KSh500 million.
Unlike the Telposta Towers and Makande-Bombolulu transactions, the report sets out a specific payment schedule for the Gilgil property. However, it does not state that the sale has been completed.
The trustees said they were taking steps to ensure the management of the fund and its assets complied with the Retirement Benefits (Occupational Retirement Benefits Scheme) Regulations, 2000, made under the Retirement Benefits Act, 1997.
The scheme is pursuing the proposed disposals as discussions with the government agencies continue, with the transactions yet to be completed.
Also Read: Telposta Pension Announces Sale of Plots, Flats and Bungalows from as Low as 600K
Telposta Pension Scheme Net Assets Fall by KSh854.9 Million
The proposed property sales come as the Telposta Pension Scheme reported a decline in its net assets in the financial year ended June 2026.
The scheme’s net assets fell by 5.9 per cent to KSh13.64 billion, down from KSh14.50 billion in the previous financial year, representing a reduction of KSh854.9 million.
Pension payouts stood at KSh828.1 million, compared to KSh843 million in the 2025 financial year.
Meanwhile, investment income remained largely unchanged at KSh986.5 million. However, property management expenses rose sharply by 62.2 per cent to KSh892.5 million.
The increase in expenses contributed to a steep decline in net investment income, which dropped by 81.6 per cent to KSh76.2 million from KSh414.3 million in the previous financial year.
Administrative expenses also increased by 76.5 per cent to KSh391.2 million.
Investment properties accounted for KSh12.29 billion, representing approximately 90 per cent of the scheme’s net assets.
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