In a significant move, the Kenya Pension Funds Investment Consortium (KEPFIC) and the Fund Managers Association (FMA) have joined hands to pursue diverse investment opportunities for local pension schemes. The collaboration was formalized through a signed Memorandum of Understanding (MOU) during the KEPFIC 2023 Investment Conference held last Friday. The primary objective of this partnership is to promote infrastructure and alternative asset investments within pension funds, with the goal of achieving greater diversification and higher returns to benefit pension beneficiaries sustainably.
KEPFIC, with the support of USAID and the World Bank Group, is an initiative within the pension industry that facilitates long-term investments in infrastructure and alternative assets for Kenyan retirement funds. By addressing challenges like limited visibility on alternative investment opportunities, high capital requirements, and a lack of specialized investment expertise, KEPFIC aims to assist pension schemes in overcoming hurdles to diversification. Under the collaboration, KEPFIC will take the lead in scouting and identifying viable investment prospects, while FMA will play an independent role in assessing these opportunities and showcasing them to pension funds.
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Ngatia Kirungie, the head of the KEPFIC Secretariat and CEO, expressed his excitement about collaborating with FMA member fund managers. He emphasized their collective effort in leveraging investment management expertise to promote alternative asset investments in pension portfolios. The formalized relationship between KEPFIC and FMA signifies their shared dedication to maximizing returns for local pension schemes through diversification. FMA chairman Patrick Kariuki highlighted the responsibility that fund managers hold in managing retirement funds for millions of individuals. He expressed enthusiasm for exploring investment opportunities that enhance pension scheme portfolios in cooperation with KEPFIC.
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The recent KEPFIC 2023 Investment Conference presented pension schemes with attractive investment deals worth Sh700 billion in alternative assets. These opportunities span various sectors, including energy, affordable housing, healthcare, water and sanitation, transport and logistics, agriculture, telecoms, and ICT.
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