Nairobi Securities Exchange (NSE) has recorded the listing of Kenya’s first infrastructure fund, a time when the country is increasingly turning to alternative, cheaper financing options, away from expensive debt,
Spearhead Africa Asset Management (SAAM) on Tuesday listed the Spearhead Africa Infrastructure Fund (SAIF) on the NSE, creating a new asset class that allows investors to buy and trade infrastructure debt through the stock exchange for the first time.
The fund raised Sh3.4 billion through its initial public offering, backed by local and international institutional investors, including CPF Group and the UK government through its MOBILIST programme.
Kenya has in recent years been exploring infrastructure funds and other blended financing models to reduce reliance on costly external borrowing for roads, energy, transport and digital projects.
The Kenya National Infrastructure Fund (KNIF), launched in 2020 with an initial target of about Sh250 billion, was part of efforts to mobilise long-term domestic and foreign private capital for infrastructure development.
SAIF will invest in senior debt financing for private-sector-led infrastructure projects across East Africa, targeting sectors such as renewable energy, digital infrastructure, logistics and electrification.
The fund is regulated by the Capital Markets Authority and introduces local currency infrastructure financing that shields projects from foreign exchange risks associated with dollar-denominated loans.
Until now, infrastructure investments were largely limited to private deals that were difficult for ordinary investors to access or trade.
SAAM managing director and chief executive said the fund was designed to “democratise access” to infrastructure investments while proving that local currency infrastructure financing can work at scale.
“The strong participation from domestic and international investors shows growing confidence in African capital markets and locally structured investment solutions,” he said.
NSE chief executive Frank Mwiti described the listing as a major milestone in deepening Kenya’s capital markets.
“SAIF demonstrates how the exchange can mobilise long-term domestic capital towards critical infrastructure financing while giving investors transparency and liquidity,” he said.
The UK government’s MOBILIST programme anchored the transaction with Sh1.2 billion, helping the fund attract additional institutional investors.
British High Commissioner to Kenya, Matt Baugh, said the investment reflected a shift from traditional aid to investment-driven partnerships.
“Better infrastructure means better services in energy, digital connectivity, logistics and electrification,” he said.
CPF Group chief executive Hosea Kili said the fund offers pension schemes a regulated and transparent way to invest in infrastructure while securing long-term returns for members.
Kenya’s pension industry manages more than Sh2.8 trillion in assets, making it a key source of long-term capital for infrastructure financing.
