Fund managers want a piece of State oil billions
The Government has been advised to outsource the management of the money it set to start earning with the commencement of commercial production of oil.
Analysts said yesterday the management of the planned Sovereign Wealth Fund by independent fund managers would enhance professionalism while divorcing it from politics of the day. Analysts from the Britam Asset Managers (BAM) also said the Stateshould resist withdrawing the money remitted to the fund for up to five years to enable it grow to over Sh100 billion.
“For us to successfully launch and run the Sovereign Wealth Fund, we need to subscribe to high governance standards. One of the measures to do this is ensuring the fund is managed by independent fund managers,” said BAM Chief Investment Officer James Mose.
He was speaking at a forum on the Sovereign Wealth Fund in Nairobi.
The Government is already in the process of setting up the fund and recently published a draft Kenya Sovereign Wealth Fund Bill, stipulating how the country will utilise revenues from oil and other minerals.
In the Bill, the National Treasury proposes the creation of a stabilisation component that will cushion the economy from unforeseen shocks and will receive transfers of at least 15 per cent of total revenues, an infrastructure development component (60 per cent) and urithi (savings) component (10 per cent).
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production of oilSovereign Wealth FundNational Treasury