Pension Fund Managers Zamara Fanaka in Trouble

The financial health of Zamara Fanaka Retirement Fund under Scrutiny after it fails to honour Commitments


Zamara Fanaka Retirements Fund has requested for arbitration after being sued by its architect over a Shs 76 Million debt

Zamara, one of the leading pension services providers, failed to pay AIA Architects Limited after the architectural consultancy firm provided services.

According to documents filed in court, Zamara contracted AIA Architects for architectural design services.

The architectural firm completed its work in accordance with its contract and billed Zamara for Shs 76 million.

Even after receiving the fee note, Zamara declined or was unable to pay.

AIA Architects stated that it has been unable to reach Zamara for several months prompting it to file the suit in court.

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In a statement, AIA Architects states that it was contracted by Zamara in 2015 to design an office block.

Two years after being appointed as consultants, Zamara failed to respond to queries.

“On 29th June 2018, the Plaintiff wrote to the Defendant concerned by their reluctance to respond to the letters.

Subsequently, the Plaintiff was unable to progress any further without specific instructions from the Defendant or any response to their letters.”

AIA Architects then sent a fee note of Shs. 76,629,450.17 but still Zamara did not respond, prompting AIA Architects to move to court.

However, Zamara, in a replying affidavit by James Olubayi, chairman of the Accounts and Investment Committee of Zamara Fanaka Retirement Fund, is requesting for mediation or arbitration through the court. The matter is pending in court.

Zamara is also under investigations over possible conflict of interest because its chairman Michael Waweru also serves as Kenya Railways Corporation yet Zamara still manages KPC’s pension scheme.

DCI is investigating the circumstances under which Zamara and Kenya Railways do business together yet Waweru chairs the boards of both companies.

Waeru, who served as KRA commissioner general between 2003 and 2012, was Zamara chairman before he was appointed to head Kenya Railways Board.