US pension schemes inject Sh60bn in Africa, to find deals with KEPFIC

NAIROBI, Kenya, April 29 – A number of U.S. pension funds and foundations are seeking to inject over USD 500 million (Shs 60 billion) into Africa and find co-investment opportunities with Kenyan Pension Funds Investment Consortium(KEPFIC).

This was revealed during a delegation trip by U.S. institutional investors held this week in Kenya and Senegal which seeks to explore opportunities in East and West Africa and facilitate U.S. institutional capital flow into Africa.

Kenya’s infrastructure, housing, and other high-impact local businesses have been earmarked for co-investment partnerships forged by The Kenya Pension Funds’ Investments Consortium (KEPFIC).

The delegation included key decision-makers from The City and County of San Francisco Employees’ Retirement System, Teachers Retirement System of Texas, The City of Philadelphia Board of Trustees (Philadelphia Board), The City of Hartford Pension Commission among others. The total assets under management of members of this delegation represents over $1 trillion.

This is the fourth U.S. Institutional Investor delegation trip to different regions in Africa since 2017.

The 2019 delegation to Kenya and South Africa included 17 asset owners – pension funds, insurance companies, and endowments—as well as 15 fund managers, bankers, and industry partners. Overall, these trips have resulted in $1 billion in total investment into Africa and other emerging markets.

This trip will allow members to advance their understanding of the investment opportunities and pursue co-investment opportunities with Kenyan Pension Funds Investment Consortium (KEPFIC) members.

They will also share their extensive experience in U.S. financial markets with local peers, and develop relationships with local financial market executives.

Ngatia Kirungie, KEPFIC Head of Secretariat noted: “Many indicators including the growing middle class and rapid urbanization show that Kenya, and Africa at large, is ready for impactful growth. Since our launch, we have made significant steps in building infrastructure investment capacity and closed several deals through the help of USAID and we believe the new alliances will unlock our next level of investments. The rapid rate of urbanization exposes Kenya’s immense opportunities for investments in power, transportation and urban development”.

KEPFIC is a consortium of 24 public and private sector pension schemes in Kenya that hold approximately KES 500 billion in assets and have come together for the purpose of collaborating to make long-term investments in infrastructure, affordable housing, and energy, providing competitive returns and diversification opportunities to members.