NAIROBI, Kenya, Apr 1 – The Kenya Pension Fund Investment Consortium (KEPFIC) is hosting 30 representatives of major U.S. pension and asset management funds on an initial mission to evaluate the investment potential and opportunities in infrastructure in Kenya.
Collectively, these funds manage assets worth Sh100 trillion ($1 trillion).
The visit is supported by the U.S. National Association of Securities Professionals, the World Bank, and the U.S. government, through USAID.
“By moving from traditional investments in stocks and bonds to new opportunities in Kenyan roads, power plants and enterprises, Kenyan and U.S. pension funds will strengthen commercial ties between our countries. These investments will benefit both countries and enhance the economic security of Kenyan and American retirees,” said U.S. Ambassador McCarter.
Historically, infrastructure development has been financed by the public sector. However, the country’s current financing gap for infrastructure is Sh400 billion.
During the mission, executives from the U.S. pension and asset management funds will discuss opportunities with the consortium its membership of 12 Kenyan leading fund managers, which currently manage Sh200 billion in assets.
Carlos Felipe Jaramillo, World Bank Country Director for Eritrea, Kenya, Rwanda and Uganda says Africa has a huge infrastructure gap which if well structured should yield attractive returns which will help provide jobs, drive social and economic development & reduce poverty.
Projects to be financed under this partnership would include roads, water and sanitation, energy and affordable housing.
Together these would support the attainment of the Kenyan Government’s Big 4 Agenda for national development.
This represents an exciting model which has been successfully executed in emerging markets and could fill the existing infrastructure financing gap in Kenya, and Africa.