A commercial court has recorded a consent between Kenya Railways Pensioners and a real estate company to withdraw a Sh26 billion claim.
The pensioners got a reprieve after Edermann Property entered into an agreement with Registered Trustee of Kenya Railways Retirement Benefit schemes and Kenya Railways Corporation to solve the row that has stretched for over a decade.
The consent was recorded at Commercial and admiralty Division, Milimani Law Courts.
“The plaintiff hereby withdraws its suit against the respondents unconditionally,” read the consent document.
Edermann Property Limited offered to seek an out-of-court settlement as an alternative to solve the decade-long dispute.
The dispute arose after Kenya Railways Corporation and Kenya Railways Staff Retirement Benefit Scheme (KRSRBS) started selling land that Edermann had tendered and won. It claimed it was ready to put in an investment of over Sh40 billion together with its partners.
But Edermann extended an olive branch to KRC and KRSRBS to stop the suffering of the pensioners, who have spent millions of money in court, after their plight was published in the media.
"We are very happy and feel relieved after a protracted court battle. We are looking forward to more fruitful deliberations," pensioner John Ndege said.
The retiree further said the move by Edermann was geared towards helping pensioners whose lives had been seriously affected.
He called on all affected pensioners to be optimistic terming the firm's decision "a possible light at the end of the tunnel".
In 2012, High Court Judge Eric Ogola reduced to four the over 20 properties injuncted by Justice Alfred Mabeya.
In May, KRC retirees urged the government to intervene and ensure their monthly pension is paid.
Mwangi said, Kenya Railways Staff Retirement Scheme (KRSBS) had assets worth Sh12.6 billion.
"When the government could not continue paying us, it transferred some of the properties owned by KRC to the scheme," Mwangi said.
But the scheme was only able to make Sh24 million monthly against pensions amounting to Sh73 million for 10,000 members.
Since then, Mwangi said the scheme has not been able to break even and has been defaulting on their payments for months.
This, he said, is even after selling some of the properties and renting out commercial buildings.
"The scheme has not been able to liquefy its assets to pay our dues, and we are unable to follow up and find out what’s happening," he said.
The scheme’s board comprises three government appointees, three appointees of KRC and three members, he said, a structure which does not serve the pensioners.
