NSSF to enter into private equity partnerships with Kuramo in portfolio shift
NSSF to enter into private equity partnerships with Kuramo in portfolio shift
The National Social Security Fund (NSSF) is rolling out a new campaign to shift the way it invests away from conventional assets and towards approaches that better align risk, returns and long-term sustainability.
At a recent networking forum organized by Kuramo Capital Management, NSSF Managing Trustee David Koros said private equity is gaining a lot of traction among pension funds.
Such investments provide the kind of steady, long-term returns that institutional investors are increasingly looking for in an uncertain economic climate, he said.
The forum brought together a diverse mix of stakeholders, including pension schemes, development finance institutions, foundations, family offices and industry leaders.
Their involvement was a sign of increasing regional appetite for alternative investment channels, especially private equity, in light of volatility and lower returns in traditional markets.
NSSF has a portfolio under management of some Ksh.5.7 billion, said Koros.
However, the fund has set its eyes much higher and would like to grow its asset base to Ksh.1 trillion in the next one year.
This ambitious objective reflects a conscious effort at diversification, with private equity expected to be the main driver of growth.
U.S. Embassy Chargé d’Affaires Susan Burns also attended the event and praised Kenya’s investment environment.
She mentioned how the country has consistently been ranked as one of the best destinations for private equity and venture capital in Africa in recent years.
Burns said Kenya’s robust entrepreneurial culture and initiatives to establish a conducive business environment continue to attract global investors.
And Burns said companies such as Kuramo Capital represent the type of international partnerships the U.S. is looking to encourage.
She connected this to the larger “Freedom 250” initiative to honor 250 years of American independence and promote worldwide economic collaboration.
Shaka Kariuki, Co-CEO of Kuramo Capital, for his part, reiterated the firm’s optimism on Kenya’s economic prospects.
“The country is a leading investment destination on the continent with opportunities across many sectors,” he said.
“Infrastructure and financial services remain the key focus areas given the strong potential for growth and value creation,” Kariuki said.
In general, the forum discussions mirrored an overarching trend among institutional investors.
As global economic conditions continue to shift, many are turning to private equity to generate higher returns and build more resilient portfolios. The transition is a major move for NSSF as it modernizes its investment approach and sets itself up for major future growth.
