This archive report was first published on 17 July 2019.
On July 17, 2019, Stanley Kamau, the Director General of the Public Investments and Portfolio Management in the National Treasury, urged pension funds in Kenya to invest in infrastructure to support the attainment of the Government's Big 4 Agenda.
According to Kamau, participation by pension funds is critical in meeting the funding gap for infrastructure, which currently stands at $4 billion. He noted that there is a pipeline of opportunities to invest under the PPP programs and pension funds can benefit from the stable and attractive long-term returns that can be obtained by investing in infrastructure PPP projects.
Formed in 2018, the Kenya Pension Fund Investment Consortium (KEPFIC) has a membership of 14 pension funds with a total asset base of over Ksh 200 billion. The consortium aims to mobilise a fund of Ksh 5 billion over a period of two years to undertake infrastructure projects, including energy, roads, water, and affordable housing.
KEPFIC has received a number of proposals for infrastructure investments and plans to partner with pension funds in the United States, South Africa, and the United Kingdom to facilitate Ksh 25 billion in investments in infrastructure, real estate, and affordable housing over the next four years.
Ken Kaniu, CEO of Britam Asset Managers, cited the example of Britam's recent investment of Ksh 1.4 billion in an energy plant in conjunction with a US-based company called Everstrong.
Nzomo Mutuku, CEO of the Retirement Benefits Authority (RBA), urged KEPFIC to broaden its membership to bring more pension funds on board, stating that investment in alternative assets by schemes was gaining momentum.
