Pensions firm in deal to increase investment portfolio

CPF Financial Services Group Managing Director Hosea Kili. [Harun Wathari, Standard]

CPF Financial Services has entered into a partnership with Africa Finance Corporation (AFC) to strengthen its infrastructure investment portfolio.

AFC is a pan-African development multilateral finance institution known to provide solutions to the continent’s infrastructure.

The collaboration will involve the firms identifying, developing, and co-financing priority infrastructure projects in Kenya. CPF Financial Services Group Managing Director Hosea Kili said the amount at stake will be revealed later.

“That will be discussed in detail after it has gone through the process of fund managers as well as trustees. The decision will be made and announced,” he said during the signing of the deal on Monday.

He, however, highlighted areas of interest such as affordable housing, health infrastructure, special economic zones (SEZ) and geothermal energy as some of ideas that will be on the table for consideration.

Mr Kili described the MoU as a marriage that works both ways.

“Our small investment in AFC will bring (the financier) to invest with us in Kenya. This is a marriage that work both ways.”

CPF Financial Services, which manages pension for more than 500,000 workers in county and national government, has an asset base of over Sh100 billion.

AFC has invested almost $12.7 billion (Sh2 trillion) across the continent. It has investments of Sh60 billion in Kenya.

“We have a pipeline of industrial parks especially the SEZ that we are looking into to invest and we hope we can do it together with our new partners,” said AFC President and Chief Executive Samaila Zubairu.

He said the time is right for the continent to find local currency solutions for its infrastructure and industrial needs.

 “It is always good to partner with a local anchor, and we think the pension industry in Kenya is very good so we look forward to having those conversations.”