NAIROBI, Jan. 29 (Xinhua) -- Chinese construction firms are facilitating Kenya's pension funds to diversify into the infrastructure space, the pension industry said on Friday.
Joseph Rono, director for strategy and finance at County Pension Fund (CFP) Group told Xinhua in Nairobi that the advantage of Chinese firms is that they are able to get into fixed sum contracts for property developments that can't be varied.
"This means that Kenya pension funds can make decent returns on their investments in infrastructure projects," Rono said during a pension forum.
CPF which is approximately 90 years old is the pension fund for county government workers.
CPF Group partnered with China Wu Yi to deliver the 1.5 billion shillings (13.62 million U.S. dollars) Nova Pioneer Boys' and Girls' Secondary boarding schools in just six months.
Rono said that Chinese contractors have the financial might to undertake infrastructure projects on time while maintaining high standards.
He observed that contractors from the Asian nation are able to win competitive tenders floated in Kenya because they have demonstrated technical competence.
According to the CPF Group, pension contributions from members have been increasing while investment opportunities have been diminishing among the traditional asset classes.
Rono revealed that equities in the security exchanges have been a favorite destination for pension funds.
"Pensions are now looking at infrastructure projects in order to boost old-age income security," he added.
Hosea Kili, CEO of CPF Group noted that Chinese contractors have won competitive tenders to undertake their infrastructure projects because of their diligent execution of tasks. "One thing that Kenyan contractors need to learn from their Chinese peers is how to deliver construction work on time," Kili noted. Enditem