Kenyan investors will now have a new avenue to invest in major development projects following the listing of the country’s first infrastructure fund at the Nairobi Securities Exchange (NSE), marking a key milestone in the deepening of local capital markets.
Spearhead Africa Asset Management (SAAM) listed the Spearhead Africa Infrastructure Fund (SAIF) on May 19, making it the first infrastructure-focused investment vehicle to trade on the NSE.
The fund raised Ksh3.4 billion from a broad pool of investors and is expected to open up infrastructure investment to both institutional and individual investors through a regulated, liquid platform.
SAIF introduces infrastructure as a new asset class in Kenya’s public markets, with investors now able to buy and sell units on the exchange, a shift from past private deals that were difficult to access and lacked liquidity.
According to SAAM, the listing is also expected to attract long-term capital into critical sectors of the economy, such as energy, digital infrastructure, logistics, and electrification.
New NSE Listing Opens Infrastructure Investment to Kenyan Investors
SAAM Managing Director Ngatia Kirungie said the fund is designed to widen access and support large-scale infrastructure financing.
“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.
The participation of domestic and international investors, Kirungie added, signals confidence in the fund’s structure and its potential to support economic growth.
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The fund will invest in a diversified portfolio of senior debt across private sector-led infrastructure projects in East Africa.
It already has a pipeline targeting renewable energy, digital infrastructure, logistics, and electrification, sectors viewed as critical for sustaining economic expansion in the region.
The Ksh3.4 billion raised during the initial public offer was anchored by CPF Group and the UK government through the Foreign, Commonwealth and Development Office under the MOBILIST program.
The anchor investments played a key role in de-risking the fund at launch and attracting wider participation from domestic institutional investors.
Unlocking Long-Term Capital for Development
The listing is expected to help mobilize long-term domestic capital, particularly from pension funds managing over Ksh2.8 trillion in assets, which have had limited access to infrastructure as an investable asset class.
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NSE Chief Executive Frank Mwiti described the listing as a major step in strengthening the country’s financial markets.
“This listing represents a significant milestone in the continued deepening and diversification of Kenya’s capital markets,” said Mwiti.
The development, he said, aligns with the NSE’s strategy to facilitate efficient capital deployment while expanding access to innovative investment opportunities.
He added that Kenya’s pension sector stands to benefit from the introduction of a regulated infrastructure vehicle aligned with long-term liabilities, enabling funds to diversify their portfolios beyond traditional assets such as equities and government securities while reducing exposure to foreign exchange risk.
On his part the UK High Commissioner to Kenya, Matt Baugh, said the listing reflects a broader shift towards investment-led partnerships in infrastructure financing.
“This latest listing is a further demonstration of the UK’s partnership to secure Kenyan investment in the things that Kenyans rely on every day,” Baugh said, highlighting the role of improved infrastructure in supporting services such as energy, digital connectivity and logistics.
CPF Group Chief Executive Hosea Kili said the fund provides a balance between returns and capital preservation for pension investors.
“SAIF provides a compelling opportunity to access infrastructure as an asset class through a regulated, transparent vehicle aligned with our investment mandate,” said Kili.
The CEO added that the success of SAIF could pave the way for similar listings, helping bridge the financing gap in infrastructure projects and positioning Kenya among emerging markets leveraging capital markets to support development.
