Kenya has marked a major milestone in its capital markets sector following the listing of the country’s first infrastructure fund on the Nairobi Securities Exchange.
The Spearhead Africa Infrastructure Fund (SAIF), valued at approximately Ksh 3.4 billion to Ksh 3.5 billion, is expected to give investors direct exposure to infrastructure projects in sectors such as renewable energy, digital infrastructure, logistics and electrification. Investors are also expected to receive quarterly payouts from the fund’s investments.
The fund, sponsored by Spearhead Africa Asset Management, becomes the first infrastructure-focused investment vehicle to trade on the NSE, introducing infrastructure as a new asset class within Kenya’s capital markets.
Speaking on the listing, Spearhead Africa Asset Management Managing Director Ngatia Kirungie said the fund was designed to make infrastructure investment more accessible to Kenyans.
“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,” said Kirungie.
Kirungie also noted that unlike traditional infrastructure investments that lock in investors for years, the NSE listing allows investors to enter and exit more easily through trading.
“Many times when you invest into an infrastructure fund, it will take 10, 15 or even 20 years before you can get your money out. The situation where you are stuck for that much time is unattractive and unappealing to a lot of investors,” he said.
According to the fund managers, the investment vehicle targets returns of between five and six percent above the prevailing 10-year government bond yield.
NSE Chief Executive Frank Mwiti described the listing as a major step in expanding Kenya’s investment landscape.
“This listing represents a significant milestone in the continued deepening and diversification of Kenya’s capital markets,” said Mwiti.
The United Kingdom, through the MOBILIST programme, was among the anchor investors supporting the listing alongside CPF Group.
British High Commissioner to Kenya Matt Baugh said the initiative would help drive long-term economic growth through infrastructure investment.
“Better infrastructure means better services – energy, digital, logistics and electrification, strengthening the basis for long-term growth,” said Baugh.
Analysts say the listing could attract more investors seeking regulated alternatives beyond traditional real estate investments, while also boosting long-term infrastructure financing in Kenya.
