A Future Kenyan Strategic Development Sovereign Wealth Fund

Policymakers in Kenya are in discussions in creating a sovereign wealth fund (SWF). Currently, state-owned enterprise (SOE) profits are paid into the treasury or to the Kenyan Ministry of Finance as a dividend to the government. Kenya plans to use profits from state-owned enterprises to fund a sovereign wealth fund. This strategic development sovereign wealth fund (SDSWF) will reinvest SOE profits to advance Kenya’s commercial interests in foreign countries. The proposed law and regulations still have to be approved by the Kenyan Parliament.

Socialist countries are embracing economic reforms to create regional business champions.

In the past three decades, some Asian and a handful of African countries have undertaken massive privatization programs. By privatizing public companies, countries can draw in foreign investment, reduce national debt, and expand their capital markets. In addition, there are plans to sever SOE ties from the treasury and bring them under a national holding entity, in this case the National Assets Holding Authority.[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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