Browsing: Pension funds in Kenya

• AFC and CPF Financial Services will collaborate in identifying, developing, and co-financing infrastructure projects aligned with Kenya’s growth plan. 
• Globally, infrastructure development is recognized as a critical pathway to any country’s economic take-off. 
• Kenya boasts one of the best infrastructure networks in the South of Sahara.  

Kenya’s infrastructure is set for a huge boost following a partnership between the Africa Finance Corporation and CPF Financial Services. The agreement signed during the opening of the ongoing Africa Climate Summit is aimed at increasing infrastructure investments in the East African nation. 

Under the new partnership AFC and CPF Financial Services will collaborate in identifying, developing, and co-financing priority infrastructure projects that are aligned with Kenya’s development roadmap. The two organisations will leverage their combined technical expertise and access to domestic and global capital.

“African institutional investors are one of the single largest sources of investable capital and will play a catalytic role …

The slow growth in the retirement benefits assets in Kenya in the second half of 2020 has been attributed to the Covid-19 pandemic.

Retirement Benefits Authority Chief Executive Officer Nzomo Mutuku revealed the sector only grew by 5.77 percent from Sh1.322 trillion to Sh1.398 trillion, owing to the pandemic which adversely affected the financial markets and the wider economy in the first half of last year.

Major consequences of the pandemic in the country include massive job losses, which put contribution towards retirement schemes under pressure.

Mutuku said that fund managers and approved issuers in the country held majority of the assets amounting to Sh1.286 trillion.

During the period under review, Mutuku revealed that schemes continued to invest heavily in government securities with the asset class accounting for 44 percent of the total assets under management.

This was followed by immovable property which accounted for 17 percent, investments in guaranteed …

Kenya pension schemes are gearing up to undertake major infrastructural work, taking advantage of a growing need for capital both by government and the private sector. 

While most of the capital generated in Kenya for infrastructural development is often obtained in the form of concession loans, pension schemes have been utilized mainly in real estate as well as government bonds. 

However, under a new outfit called Kenya Pension Fund Investment Consortium (KEPFIC) plans are underway to form a partnership with pension funds in the United States, South Africa and the United Kingdom to facilitate KSh25bn (US$229.6 million) in investments in infrastructure, real estate and affordable housing over the next four years. 

The US through Kenya’s Ambassador Kyle McCarter, together with representatives from the World Bank and American advisory firm MiDA Advisors, have launched the outfit.  KEPFIC will enable pension schemes to jointly make sustainable long-term infrastructure and alternative asset investments …