Spearhead Plans $116 Million Kenya Infrastructure Fund, Having Raised 3.5 Billion Shillings
Updated
Updated · Bloomberg · May 18
Spearhead Plans $116 Million Kenya Infrastructure Fund, Having Raised 3.5 Billion Shillings
1 articles · Updated · Bloomberg · May 18
15 billion shillings ($115.9 million) is the target for Spearhead Africa Asset Management’s infrastructure fund, which will finance Kenyan projects with long-term loans in local currency.
3.5 billion shillings had already been raised by the end of March, giving the fund an early capital base as it seeks to expand lending to developers.
Pension funds, an insurer and Mobilist — a program under the UK government’s Foreign, Commonwealth & Development Office — are among the investors backing the vehicle.
The structure aims to channel domestic-currency financing into infrastructure, reducing developers’ reliance on foreign-currency borrowing for long-duration projects.
As Kenya channels pension savings into infrastructure, how are citizens' retirement funds being protected from the risks of mega-project failure?
Can local currency funds truly solve Kenya's infrastructure gap, or will they struggle to compete with larger foreign-backed investment?
With public and private funds both targeting profitable projects, will crucial but unprofitable rural infrastructure be left behind?