State-run pension fund, National Social Security Fund, intends to invest in Amu power project in Lamu County to grow its revenue base.
According to its acting chief executive Anthony Omerikwa, the venture will mark the beginning of NSSF's investment in the power sector.
“As part of our diversification strategy, we now intend to invest in power project across the country as a strategic move to grow our income,” Omerikwa said.
However, he did not reveal the total value of investments in the multi-billion Lamu-based coal power plant nor the timelines on when this will happen.
Amu is the largest private sector led infrastructure project in East and Central Africa coal power plant that is running a 981.5 Megawatt coal-fired thermal electricity-generating plant in the Manda Bay area of Lamu County.
Having kicked off operations in September 2015, it is expected to produce 5,000MW of power within a period of three years while providing reliable and affordable electricity to the national grid to bring down the cost of power for both domestic and industrial use.
The plant is located 20 kilometres away from Lamu Town and is contructed on 869 acres of land.
The intention comes after the fund lost close to Sh10 billion in the last one year due to falling prices at the Nairobi Securities Exchange.
In addition to the bourse's poor performance, Omerikwa attributed the losses to increased operational cost and expansion of their services to the devolved Huduma Centres and staff trainings.
As at June 30, the fund had invested in blue chip companies, government bills and bonds, and atleast 25 other companies.
Some of the notable companies include Safaricom where it has a stake worth Sh5.7billion, Kenya Commercial bank (Sh6.3 billion ), Equity bank (Sh3.4 billion) East African Breweries (Sh6.9 billion), Bamburi Cement (Sh9.7 billion), British American Tobacco (Sh2.7 billion), Equity Bank (Sh3.4 billion) and Kenya Power (Sh1 billion).
As at June 30 last year, the fund had a net asset valued at Sh172.086 billion and a net rate of investment standing at Sh1.03 billion.
However the unaudited results from the fund as at June 30, 2017 shows that the net rate of investment has shot up to Sh22.25 billion, a 95 per cent increase while the net asset value stands at Sh197 billion.
The results also reflect that the fund has contributions receivable at Sh13.55 billion within the said period, a 4.7 per cent increase from Sh12.9 billion. NSSF currently controls 20 per cent of the pension industry in the country.
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