Kenya’s annual infrastructure funding gap currently stands at more than $1.8 billion. African infrastructure projects have long-dated returns that match the long-term liabilities that institutional investors must pay out, making them a promising investment for pension funds. However, these projects often require expensive structuring and due diligence fees, which make it difficult for individual Kenyan pension funds to pursue these opportunities.
Our Solution & Impact
Prosper Africa helped to facilitate the launch of the Kenya Pension Fund Investment Consortium (KEPFIC) through the U.S. Agency for International Development (USAID). This group of major Kenyan pension funds intends to invest over $200 million in Kenyan infrastructure projects alongside U.S. investors over the next five years. The consortium model enables individual funds to share knowledge, costs, risks, and due diligence teams. By supporting this model, the U.S. Government is helping deepen local financial markets and providing local pension funds with the chance to diversify their portfolios through the financing of local infrastructure needs.
This new consortium will expand access to critical infrastructure for Kenyans, improve returns for pensioners, and reduce Kenya’s reliance on Chinese debt. It also sends an important signal to U.S. investors that Kenyan pension funds are good local partners.