Retail investors can now own a piece of mega infrastructure projects through NSE

(From left) Spearhead Africa Asset Management (SAAM) MD Ngatia Kirungie, National Treasury CS John Mbadi, Nairobi Securities Exchange chairman Kiprono Kittony and SAAM board chairman Andrew Kairu witness the first trade after the listing of the Spearhead Africa Infrastructure Fund on NSE on Tuesday. [Courtesy]

For the first time, ordinary Kenyans can easily invest in big projects such as electricity, internet networks and renewable energy through the stock market.

This is after Spearhead Africa Asset Management (SAAM) on Tuesday listed the Spearhead Africa Infrastructure Fund (SAIF) on the Nairobi Securities Exchange (NSE).

It is Kenya’s first listed infrastructure fund, and it has already raised Sh3.4 billion from investors.

The fund received strong backing from two big anchor investors – Kenya’s CPF Group and the UK government’s Mobilist programme, which contributed Sh1.2 billion.

This is Mobilist’s second anchor investment in a new NSE listing this year. SAIF will provide senior debt to private companies working on big infrastructure projects across East Africa.

These include renewable energy, digital infrastructure, logistics and electrification. All the investments are in Kenyan shillings, which protects against losses from currency fluctuations — a major headache in many past projects. Previously, investing in infrastructure was mostly for big institutions or very wealthy people through complicated private deals.

Many ordinary Kenyans could not easily invest in the bourse. Now, with SAIF listed on the NSE, ordinary investors and pension members can buy and sell shares just like any other stock, with no lock-in period.

This is good news for Kenya’s pension funds, which manage over Sh2.8 trillion. They now have a simple, regulated way to put money into real development projects while looking for steady returns for their members.

Spearhead Africa Asset Management chief executive Ngatia Kirungie said the fund opens the door for everyone.

“SAIF is designed to democratise access to the infrastructure asset class for all investors and demonstrates that local currency infrastructure finance can be delivered at scale,” Kirungie said.

NSE chief executive Frank Mwiti described the listing as a major step forward for the country’s financial markets.

“This listing represents a significant milestone in the continued deepening and diversification of Kenya’s capital markets,” Mwiti said.

British High Commissioner Matt Baugh said the UK is changing how it supports Kenya, moving from pure aid to real investment partnerships.

“The total of Sh3.4 billion raised from the UK’s anchor investment of Sh1.2 billion reflects our shift from donor to investor,” Baugh said.

CPF Group chief executive Hosea Kili explained their decision to invest: “Our priority is to deliver stable, predictable returns to our members while preserving capital.

"SAIF provides a compelling opportunity to access infrastructure through a regulated, transparent vehicle,” he said. 

The fund is regulated by the Capital Markets Authority and follows strong standards in governance, reporting and environmental protection. It already has several projects lined up for funding.