Tenants of Nairobi Railway Club were on Wednesday morning evicted from their houses in a row over rent collections reported to run into millions of shillings.
The early morning evictions saw armed police officers manning the club's entrance.
The club is a social and sports complex and hosts a restaurant, a bar and a swimming pool which is open to the general public.
Mr Johnson Miano, chairman of Association of Kenya Railways Retirees claims a group of over 9,000 Kenya Railways pensioners own the 18 acre parcel land which was given to them by the corporation after it was unable to pay them pensions in 2006.
He said they have been leasing out the property to tenants.
However the tenants have been paying rent to some "individuals at the Kenya Railway Club" instead of the association, he claimed.
Mr Miano claims they have lost over Sh2m every month as a result which made them to sue the club's management.
"Tenants were ordered to be paying our association rental dues pending hearing and determination of the case but instead they continued paying some individuals at the railway club. Our money has been going to people's pockets," Mr Miano told reported on Tuesday morning.
Staff of the club and some government officials who had attempted to access the premises were also locked out.