Pension funds in East Africa manage billions of shillings in assets.
Recently, I had an eye-opening exchange with a group of pension fund trustees from Africa. Like many others across the continent, their investment strategy is heavily skewed towards land, property development and government treasuries. These are considered safe bets, but in a world rapidly shifting towards knowledge-intensive and innovation-driven economies, they are also stagnant bets.
Pension funds in East Africa manage billions of shillings in assets. Yet most of that capital sits in low-risk, low-impact instruments, while our governments borrow heavily, often recklessly, to fund infrastructure. Many of these projects become debt traps, with taxpayers carrying the burden while political elites enrich themselves. But perhaps there is another way. What if pension funds didn’t just lend to governments, but co-owned infrastructure projects?
Across Europe, Asia and North America, sovereign wealth funds and pension schemes are evolving into engines of innovation. Norway’s Government Pension Fund Global, the largest in the world, has invested in offshore wind farms, clean energy, and logistics infrastructure. These investments have not only generated stable returns for pensioners, but also supported job creation, green technology, and broader national development.
Stimulate local economies
Similarly, Canada’s CPP Investments manages over half a trillion dollars and owns toll roads, airports, commercial real estate, and clean energy assets across the world. These are not just financial transactions; they are strategic moves that stimulate local economies, train talent, and secure long-term national benefits.
East African pension funds can do the same. A compelling example is Jolt Capital, a European fund manager entrusted with billions from sovereign and pension funds, including those of Singapore. Jolt does not simply seek financial returns; it ensures that the capital it manages also generates economic value for the countries of origin. A pension fund in Kenya, for instance, could invest in a deeptech fund manager in Europe or Asia, and, as part of the agreement, companies they invest in could be encouraged to set up production facilities in Kenya.
Those factories could train local talent. Over time, Kenyan universities might begin offering programmes tailored to that emerging industry. Eventually, a new ecosystem could take shape, attracting more companies seeking the thriving local talent and infrastructure.
Manage complex investments
This is not speculation, it is strategy. It is how countries like Ireland, Vietnam, and Singapore have built competitive, high-tech economies in just a few decades. They moved capital intentionally, and then developed the policies and institutions to support that capital. We can do the same.
In fact, even our own national infrastructure projects, such as Jomo Kenyatta International Airport or the Mombasa Expressway, could be developed and owned by Kenyan or East African pension funds. There is no reason Kenyans should pay tolls to foreign private equity firms or repay Chinese loans for decades, when the returns from these projects could instead fund the retirements of Kenyan workers.
The common objection is capacity. Many pension administrators worry they do not have the experience or tools to manage complex investments in infrastructure or deep technology. That is a valid concern, but one that can be addressed through partnerships. Working with globally-experienced fund managers allows us to de-risk these investments while building local expertise over time.
When structured properly, pensioners will still receive their financial returns. But beyond that, we gain something much more valuable. We gain ownership of our future. We develop local talent. We create sovereign control over strategic assets. And we shift from being passive recipients of development to active participants in shaping it.
The writer is a whistleblower, Strategy Consultant, and a Startup Mentor. www.nelsonamenya.com
