NAIROBI (Xinhua) --
Kenya’s pension industry is seeking to
invest in green bonds in order to diversify its revenue
streams, the industry regulator said on Tuesday.
Benefits Authority (RBA) Acting CEO Nzomo Mutuku told
Xinhua in Nairobi that pension assets hit ten billion
U.S. dollars by the end of 2017.
looking forward to the introduction of the green bond
asset class so that we can diversify our portfolio to
include environmentally friendly assets,” Mutuku said.
Securities Exchange and the Capital Market Authority
have already issued guidelines for green bonds and the
first bond is expected to be issued before the end of
the RBA, public workers currently hold retirement assets
worth eight billion dollars while the private sector has
two billion dollars under management.
the pension industry is being lured to invest in green
bonds due to expected huge returns.
government plans to offer tax incentives to investors
who purchase green bonds through exempting interest
income from taxation.
currently pension assets are invested in government
securities, corporate bonds, equities and the real
that green bonds are set to be a huge industry due to
the abundant sources of renewable energy in the country.
regulator noted that Kenya’s pension assets are still
relatively small as compared to the size of the labor
force due to the country’s low savings rate.