NAIROBI, Kenya, April 1, 2019 — From April 1-3, 2019, 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 KES 100 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 KES 400 billion. During the mission, executives from the U.S. pension and asset management funds will discuss opportunities with KEPFIC and its membership of 12 Kenyan leading fund managers, which currently manage KES 200 billion in assets.
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.
The new partnership represents a good match for the country and signals a new development in the landscape of Kenyan infrastructure investment. 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.