Kenya’s annual infrastructure funding gap stands at more than Sh203 billion ($1.8 billion). The World Bank estimates that the country requires an annual spend rate of Sh453 billion ($4 billion) over the next decade to close this infrastructure funding deficit.

While Kenya’s infrastructure has shown robust growth recently, the burgeoning debt portfolio and growing public outcry over continued borrowing could threaten the pace of infrastructure development and dent investor confidence.

This has led the Kenyan government to look for alternative forms of funding from the private sector through public private partnerships (PPPs).

The entire pension industry, on the other hand, boasts of over Sh1.319 trillion in assets under management which comprises up to 13.31 percent of the gross domestic product as of June 2021, according to the CBK.

The sector plays an important role in the economy relating to key channels of transmission especially financial and labour markets.

Thus, an increased participation of the pension sector in the infrastructure development automatically reduces the country’s public borrowing requirements; positively affecting the economy by reducing its vulnerability and enhancing its growth.