The Kenya Pension Funds Investment Consortium (KEPFIC) will this year mobilize billions in investment from local pension funds for regional opportunities.

KEPFIC Secretariat in a public statement said it is looking for bankable projects that are backed by strong environmental, social and governance principles.

“KEPFIC is releasing this Request for Proposals (RFP) to invite investment proposals from project sponsors and fund managers that are looking to raise capital from Kenyan pension funds for regional opportunities,” KEPFIC announced in public statement today.

KEPFIC is a consortium of Kenyan retirement benefit schemes that have come together to make long-term infrastructure and alternative asset investments in the region.

So far, KEPFIC has successfully mobilized over Sh16 billion ($113 million) into alternative assets investments by the Kenyan pension fund industry.

“Investment proposals will be evaluated to ensure they are technically sound, strategically focused, provide appropriate risk adjusted returns, driven by promoters with requisite track record and expertise, and have positive expected ESG impact,” the Call for Investment Proposals adds.

The secretariat has set a January 31st deadline for interested parties to submit their proposals.

KEPFIC is supported by USAID and the World Bank Group and has established partnerships with offshore pension funds looking for liquid co-investment opportunities in the region.

Through this support and co-investment partnerships, KEPFIC aims to mobilize and invest at least Sh30 billion ($250 million) in infrastructure and alternative assets in the near term and provide competitive returns and diversification opportunities to its member funds and partner co-investors.

Traditionally, pension funds have invested in government securities, listed equities and direct investment but infrastructure investments remain hugely untapped yet profitable and sustainable in the long-term.

Since 2020, the Retirement Benefits Authority investment guidelines allow pension funds to invest up to 10 percent of their assets into infrastructure which has effectively unlocked over Sh140 billion into the asset class.

Investments into alternative assets such as infrastructure and housing represent an attractive yet underutilized investment opportunity for pension funds as these investments provide competitive returns, portfolio diversification, inflation hedges and long-term asset-liability matching for pension portfolios.

KEPFIC’s strategy is to source a robust investment pipeline for the consideration of its member schemes with the goal of providing them competitive investment returns and diversification opportunities.

Read more @capitalfm