Nairobi skyline on December 31, 2023.
Two weeks ago, I argued that pension funds could be a game-changer for Africa’s infrastructure.
This sparked responses from readers across sectors, one message that stood out came from someone who runs an infrastructure engineering firm that operates across East Africa.
His feedback was sharp and technical. And it reinforced something I’ve long believed: we don’t lack ideas or capital, we lack credible execution.
He began by agreeing with me that local capital must play a bigger role. But then he challenged the ‘how.’ Are we presenting the right kinds of projects to pension funds?
Are we matching our ambition with the discipline needed to make these projects bankable? His answer, unfortunately, was no.
His firm works on the full infrastructure life-cycle: feasibility studies, designs, costings, procurement, construction supervision, and risk management. They don’t just look at whether a bridge can stand, but whether it can generate long-term value.
They integrate gender outcomes, climate impact, local job creation, and sustainability into every project they take on. In short, they understand infrastructure as a developmental tool, not just a concrete structure.
But here’s the kicker, despite their expertise, they rarely see infrastructure projects in Kenya that are well prepared, bankable, and right-sized for local investors such as pension funds. One example he cited was the Usahihi Nairobi–Mombasa Expressway project.
The Nairobi Expressway Mlolongo Toll Station.
It had the right intentions and the backing of Ever-strong Capital and CPF Advisory, but the PPP committee recently recommended it be returned for review and possible resubmission.
His point is valid—perhaps we are biting off more than we can chew. Like a baby learning to walk, we must start by crawling. We should begin with smaller, credible projects to build confidence and track record.
Instead of starting big and hoping for magic, he suggests we start small and build trust. Infrastructure, after all, is not just about scale—it’s about deliverability and credibility. This is where countries like Vietnam offer useful lessons. Vietnam didn’t start with mega projects.
It began with targeted public investments in rural roads, irrigation, and power distribution networks—projects that delivered visible benefits to citizens and built trust with local financial institutions.
Over time, these smaller wins created the foundation for more ambitious partnerships. Investors came because the government first proved it could deliver.
In contrast, Kenya often announces massive infrastructure plans without first laying the groundwork. Take the 2022 batch of water PPP projects by the Ministry of Water—34 in total. None of them have taken off.
The reasons? Overambition, lack of market testing, and inadequate preparation. A better strategy would have been to select two or three, structure them well, test market interest, and deliver. Success begets confidence. Confidence attracts capital.
He also raised a critical point on the regulatory environment. Kenya’s PPP Act of 2021 was meant to ensure transparency, competitiveness, and value for money.
Yet in practice, the law is often circumvented. We continue to see unsolicited proposals, opaque government-to-government deals, and investor pitches lacking basic documentation like employer’s requirements.
The Nairobi–Nakuru–Mau Summit project, awarded to Vinci through a competitive and transparent process, should have become the new standard. Instead, other firms, particularly Chinese contractors, are allowed to bypass it through shadowy proposals.
Politicians love the Chinese because they will do whatever the officials tell them to do, and in return, they add everything to the project cost while keeping the details under wraps—just how the politicians like it. How can local or foreign financiers invest in such a landscape of zero transparency?
This engineer’s message was not cynical. It was pragmatic. He supports pension-funded infrastructure. He wants to see local capital drive development. But he is also honest about what it takes: competent project preparation, predictable regulation, and mutual respect between government and private actors.
He even touched on the now-defunct road annuity programme—a promising model that many countries continue to use successfully. It was cut short in Kenya, possibly for political reasons.
But models like this, which focus on performance-based payments and risk sharing, can be revived if the government is serious about mobilizing private capital.
As we continue this conversation, let’s be clear: pension funds are not a magic tap. They will not flow toward poorly conceived or politically manipulated projects.
They require trust, track record, and technical precision. And that begins with the government taking its own role seriously—not as a gatekeeper, but as an enabler.
The success of pension-funded infrastructure will not come from lofty ambitions or flashy politically motivated launch events. It will come from discipline, from projects that are transparent, right-sized, and clearly thought through. If we want local capital to step in, we must first step up our credibility.
This means fewer grand promises and more functional delivery. Less noise, more results. We need fewer ribbon cuttings and more ribbon finishings.
Mr Amenya is a whistleblower, strategy consultant and startup mentor.
