Kenya has potential to attract US pension and asset funds of worth more than Sh100 trillion, media reports said. The US government is committed to support the Kenya Pension Fund Investment Consortium (KEPFIC) in tapping into resources. This in turn is anticipated to develop the country with multi-billion dollar investment.
The consortium creates great opportunities for Kenya and the US to jointly establish sustainable long-term infrastructure. In addition, alternate asset investments have been established in the East African region. The government will support the consortium through Kenya Investment Mechanism, Power Africa, the World Bank Group, and MiDA Advisors in partnership with USAID INVEST, media reports said.
The US Ambassador Kyle McCarter told the media, “The United States Government is pleased to support a Kenyan institution that presents an innovative approach to infrastructure investment in Kenya as it follows recent changes to the Retirement Benefits Authority guidelines allowing pension funds in Kenya to invest up to 10% of their assets into infrastructure, potentially unlocking over KES 100 billion ($917 million).”
Establishment of KEPFIC is a great move for Kenya and the pension schemes market. “Launching KEPFIC is a huge milestone, not just for pension schemes, but also for the country,” said Sundeep Raichura, KEPFIC Board Chairperson said in a statement. “With national and county governments facing a growing budget deficit and competing needs, pension funds through KEPFIC will be well positioned to help bridge the infrastructure funding gap.”
Pension funds will significantly contribute to infrastructure projects in the long-term in many countries, including the US.