Centum eyes Sh800 billion pension industry with Lamu plant

NAIROBI: Listed investment firm, Centum, is urging pension fund managers to consider investing in the $2 billion (Sh192 billion) Lamu coal plant. Construction on the 1050MW power plant, to be developed jointly between Centum and Gulf Energy, is expected to commence in October and become operational four years later.

“This investment will earn an attractive internal rate of return of 12 per cent on the dollar over the project’s life. We will list it as an asset-backed security at the Nairobi Securities Exchange and we’re already holding discussions with the Retirement Benefits Authority to facilitate participation of pension funds,” said Job Muriuki, an executive at Nabo Capital Limited (formerly Centum Asset Managers).