South African finance group, Alexander Forbes, said it will increase its private equity exposure in Kenya. According Angela Forbes, divisional head, Umbrella and Retail Solutions for Alexander Forbes Financial Services, the group will raise its assets under management from 1% of its overall actual commitments to 5%.

Some time ago, the firm invested Sh17.5 billion in Fanisi Venture Capital. “We did this because Fanisi is the only investment vehicle which invests in local firms,” said Okinda without giving further details about amount of the commitment made for this initiative.

Alexander Forbes now seems more confident, backed by positive performances in the past three years. In 2015, the group’s net profit for the first time since 2009, reached $52.3 million. It thus passed the period of deficits which began in 2009 and ended in 2013. However, the firm only took its decision after Kenya made some amendments to the legislation of its finance sector.

East Africa’s leading economy indeed recently adopted a law to establish a more efficient and competitive environment for the development of financial services. According to the Tax and justice Network, Kenya, via these changes, is turning into a tax heaven.

However for Alexander Forbes’s hedge funds, the new environment presents a real opportunity for expansion.

In parallel, Kenya, due to its good stability, both financial and monetary, and positive growth outlook, became a preferred target for private equity investments, in East Africa and the whole region.

Idriss Linge