Roads among Sh16bn PPP projects earmarked by 24 pension schemes

NAIROBI, Kenya, Feb 18 -The  Kenya Pension Fund Investment Consortium (KEPFIC) has earmarked the construction of a 143 kilometers road project in Northern Kenya worth Shs 2 billion.

The road will be constructed under the Kenya Road Annuity Program whose funds will be raised in upcoming bond issuance.

The project is among five other investment opportunities in infrastructure, energy, and other alternative assets. roads, energy, and student housing worth Shs 16 million sets to be funded by the 24 member pension scheme.

The Consortium with a portfolio of nearly Shs 500 billion said the project is part of its drive for diversification of local pension portfolios and the need for greater private infrastructure funding gains momentum.

Head of the KEPFIC Secretariat, Ngatia Kirungie, who spoke during an industry conference held on Thursday, said the organization has been working to increase awareness of infrastructure and alternative investments opportunities.

“Our member funds are seeking profitable and diversified investment opportunities for optimal returns for their members and retirees, and while pension funds have traditionally invested in government securities and listed equities, infrastructure investments remain an untapped, yet lucrative and impactful opportunity.

Since its inception in October 2020, the consortium has reviewed over 30 investment opportunities, with the most suitable ones presented to KEPFIC members and their fund managers.

KEPFIC is supported by the U.S. Government through USAID’s Kenya Investment Mechanism, Power Africa, the World Bank Group, and MiDA Advisors (in partnership with USAID INVEST.

Kenya’s annual infrastructure funding gap currently stands at more than Shs 200 billion presenting private investors with numerous opportunities in sectors such as power, transportation, and urban development