Britam taps NSSF executives to grow management unit

Corporate News

British American Investment Company (K) Ltd MD Benson Wairegi. He says the next phase of the company’s growth is on asset management. PHOTO | FILE 

By MUGAMBI MUTEGI, pmutegi@ke.nationmedia.com

In Summary

• The firm has hired the former chief investments officer at NSSF Uganda Francis Kajura as the general manager for Britam Asset Managers Uganda, a new unit that is currently being set up.
• It has also appointed NSSF Kenya managing trustee Richard Lang’at as a director on its board, securing within its ranks two key contacts for the funds that control combined assets of close to Sh300 billion.

Financial services group Britam has tapped NSSF executives in Kenya and Uganda aiming to lean on the multi-billion-shilling pensioners’ funds to grow its asset management business.

Britam, which on Wednesday reported a 27 per cent jump in half-year net profit to Sh2.74 billion, announced that it had hired the former chief investments officer at NSSF Uganda Francis Kajura as the general manager for Britam Asset Managers Uganda, a new unit that is currently being set up.

The company also announced the appointment of the NSSF Kenya managing trustee Richard Lang’at as a director on its board, securing within its ranks two key contacts for the funds that control combined assets of close to Sh300 billion.

“Our expansion strategy has been predominantly in insurance and the next phase is on asset management and that is why we have decided to set up a new unit in Uganda, a country that is very promising,” said Britam chief executive Benson Wairegi at a media briefing.

The new Ugandan business, which is to be a fully licensed operation by end of the year, will be Britam’s second asset management unit after the Kenyan one that was set up in 2004.

Mr Kajura has been handling an NSSF Uganda asset portfolio of about Sh137 billion, spread across real estate, fixed income as well as investments at the stock market.

READ: Britam posts 27pc rise in net profit to Sh2.75 billion

Uganda’s social security fund, which is made up of 450,000 members, has seen its size double over the past year.

Britam’s goal is to increase asset management’s contribution to total revenue from the current 14.5 per cent to 20 per cent by 2016.

The group’s asset management revenue in the half-year to June, grew 54.4 per cent to Sh413.8 million up from last year’s Sh267.2 million.

The asset base also increased 28.3 per cent to Sh55.2 billion from Sh43 billion posted during a similar period last year. Britam says this will increase in coming years following ongoing substantial investments in real estate.

Mr Lang’at, who heads Kenya’s social security fund of 1.7 million members oversees a portfolio of investments that is run by fund managers.

NSSF Kenya had an asset base of Sh135 billion as at the end of last year, representing a 22 per cent growth from Sh110.5 billion in the previous year.

“The board is confident that it will immensely benefit from the experience and skill set of Mr Lang’at,” a notice from Britam reads in part.

Britam on Wednesday announced that its revenue increased 29 per cent to Sh6 billion.