Concerns Raised Over Big Four Plans For Pension Funds

Fund managers have expressed concern regarding plans by the Government of Kenya to use pension funds in order to finance its ambitious program of infrastructure projects.

The government has indicated that it could direct $15.3 billion in pension funds towards Public-Private Partnership Projects (PPP) in manufacturing, food security, universal health coverage and affordable housing under the Big Four Agenda. 

The move has been positioned as a solution to concerns that government is building up too much debt. However, fund managers have warned that it could be a risky investment given that the return on many of the projects remains uncertain given their complexity.