Kenya’s pension funds urged to invest in infrastructure

BEIJING ROADS - Kenya’s pension funds urged to invest in infrastructure
The only way we can boost this sector is by directing our energy towards it, and this will also support the government achieve its goal/FILE

NAIROBI, Kenya, Jul 16-Kenya’s pension funds firms have been called upon to invest in infrastructure that will help support the government’s big four agenda.

Director General Public Investment and Portfolio Manager Directorate Stanley Kamau said that participation by pension funds was critical in meeting the funding gap for infrastructure.

“The only way we can boost this sector is by directing our energy towards it, and this will also support the government achieve its goal,” said Kamau.

He added that plans are currently underway to work on forming a partnership with pension funds in the United States of America, South Africa and the United Kingdom to facilitate Sh25bn in investments in infrastructure, real estate and affordable housing over the next four years.

“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 public, private partnerships programs,” he adds.

He was speaking at a plenary workshop for trustees of the Kenya Pension Fund Investment Consortium (KEPFIC).

Currently different investors have expressed interest in boosting the infrastructure sector.

Speaking at the same forum, Chief Executive Officer Revenue Benefits Authority Nzomo Mutuku highlighted on the need of bringing more pension funds.

“The establishment of this consortium will mobilize domestic capital to meet our country’s long-term investment needs,” he said.

Historically, infrastructure development in Kenya has been financed by the public sector.  However, the country’s current financing gap for infrastructure is $4 billion.

 

Author: worldwidenewscast

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