Kenyan pension funds have joined Kuramo Capital Management’s latest Sh64.5 billion fundraiser, a fund worth roughly 500 million dollars.
This marks the first time Kuramo has mobilised meaningful capital locally and regionally rather than relying mainly on US endowmentsu and foundations.
Kuramo confirmed to Business Daily that Kenyan pension funds took part, though it did not disclose the exact amount raised domestically.
The fundraiser also drew capital from Nigeria’s pension funds, the African Development Bank’s Investment in Digital and Creative Enterprises programme, and Lagos based Bank of Industry.
Kuramo said 60 percent of the proceeds will be invested within East Africa, with the fresh capital extending the life of existing portfolios including the Wholesale Investment Impact Fund and Kuramo’s Gender-Lens platform for women led businesses.
Why Kenyan Pension Funds Private Equity Allocations Are Shifting
For years, Kenyan retirement funds have leaned heavily on government securities.
Data from the Retirement Benefits Authority shows the Sh2.8 trillion retirement benefits industry held just Sh299 billion in private equity, only 1.07 percent of total assets, well below the regulatory cap of 10 percent.
By comparison, 52.18 percent of pension assets, or Sh1.465 trillion, sat in government securities as of December 2025.
That gap is starting to narrow. Shaka Kariuki, Kuramo’s co chief executive officer and chief investment officer, has pointed to a broader pivot by local capital toward venture funds and private equity.
He said the firm’s shift to raise money domestically will help pension funds diversify their portfolios beyond traditional holdings.
The National Social Security Fund has echoed that thinking.
NSSF Managing Trustee David Koros said private equity is becoming a top priority as the fund looks to grow its portfolio to Sh1 trillion.
He noted that returns from traditional asset classes have stagnated, pushing pension funds toward new opportunities that offer more consistent long term performance.
What This Means for the Kuramo Capital Africa Fund
The Kuramo Capital Africa fund has become something of a case study for how African institutional capital can support the continent’s own private equity ecosystem.
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Since its founding in 2010, Kuramo has catalysed over Sh452.5 billion, roughly 3.5 billion dollars, into African private equity firms and businesses.
The firm has supported more than 20 fund managers, anchored over 15 funds, and invested in over 200 companies directly and indirectly.
Kuramo’s pivot toward African capital was partly forced by circumstance.
Liquidity challenges among US endowments and foundations, driven in part by budget cuts affecting research institutions, made it harder to rely solely on Western funding sources.
Wale Adeosun, Kuramo’s founder and chief executive officer, framed the shift as the firm’s next evolution, unlocking African capital for opportunities on the continent rather than depending on outside sources.
Broader Implications for African Private Equity Pension Funds
This shift matters beyond Kuramo. It signals growing confidence among African private equity pension funds more broadly, as institutional investors across the continent look to alternative assets for better returns.
Kariuki has described Kenya as the top destination for capital in Africa, citing infrastructure, financial services, and the agribusiness sector as key areas of interest.
Kuramo’s local presence reinforces this. The firm holds equity stakes in Kenyan companies including GenAfrica Asset Managers and Platcorp Holdings, giving it deep networks that support its case for attracting more domestic pension money into private markets.
Looking Ahead to East Africa Investment Fund 2026 Activity
As momentum builds, expect more announcements involving an East Africa investment fund in 2026 and beyond. With 60 percent of Kuramo’s new capital earmarked for the region, and pension trustees like Koros pushing for portfolios built around partnerships rather than passive government securities, East Africa appears positioned to absorb a growing share of private equity capital in the years ahead.
Kenyan pension funds stepping into this space is a modest but meaningful signal. It suggests that African institutional capital is beginning to fund African growth on its own terms, rather than waiting on external investors to lead the way.
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