Local Pension Funds Move To Unlock Billions For Projects

 

By Kepha Muiruri

Local pension funds have moved to unlock billions of shillings in funding for infrastructural projects in Kenya and the region.

The funds, represented by the Kenya Pension Funds Investment Consortium (KEPFIC), have invited investment proposals from project sponsors and fund managers that are looking to raise capital from the country’s pension funds.

“We are looking for bankable projects with suitable returns that support economic development and are backed by strong environmental, social and governance principles,” KEPFIC said in a statement on Thursday.

The investments are required to be in East Africa for direct projects or have a Kenyan strategy for Pan-African private equity (PE) and debt funds.

Listed instruments will be favoured for debt for project level investments while Limited Partnerships will define equity for fund level investments and Real Estate Investment Trusts (REITs).

All investments are preferably to be denominated in local currency/Kenya Shilling and must have a minimum of government bond yields.

KEPFIC was founded in 2020 as an industry-wide initiative to address the challenges of investing in infrastructure and alternative assets for pension funds.

The consortium, which is registered as a limited company, is supported by the World Bank Group (WBG) and USAID.

KEPFIC aims to mobilize at least Ksh.30.8 billion ($250 million) in infrastructure and alternative assets in the near term through support from co-investment partnerships.

So far, the consortium has mobilized in excess of Ksh.13.9 billion ($113 million) into alternative assets investments by the Kenyan pension industry.