Africa. Treasury calls for pensions funding of infrastructure
The Treasury has joined a growing chorus for pension schemes to pool funds for big-ticket infrastructure projects to ease overreliance on expensive debt.
Mr Stanley Kamau, the acting director-general for Public Investments and Portfolio Management at the Treasury, said the Sh1 trillion pension industry can help plug part of the country’s infrastructure finance gap.
Kenya’s deficit in projects such as roads, power plants and lines, bridges, water and houses is conservatively estimated at more than Sh400 billion a year.
“There is a pipeline of opportunities to invest under the Public-Private partnerships (PPPs) programmes and pension funds can benefit from the stable and attractive long-term returns that can be obtained by investing in infrastructure PPP projects,” Mr Kamau told a meeting of trustees of retirement schemes in Nairobi. Such calls have in the past been made by institutions such as the World Bank Group.
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