Britam asset managers
Britam Asset Managers’ chief executive Kenneth Kaniu said that the proposed wealth fund would substitute export revenues and ensure future budgets are not over-reliant on them.
“The fund will provide an avenue to channel the funds away from the Budget to prevent “overspending during years of windfall, ” he said.
The managers, however, noted that local policymakers must protect over a potential overreliance on revenues from natural resources in future budgets saying it would results in short term shocks in the event of depressed commodity markets
“The move to have all the necessary legal and structural mechanisms in place, before expected revenues from crude oil and minerals begin to come in, should result in more effective and efficient use of resources,” said Kaniu.
In addition, Britam Asset Managers’ chief investment officer James Mose says that the SWF fund (in foreign currency) will play a huge role in stabilising the shilling when it has depreciated.
SWF is a state-run fund created from profits from natural resources like oil, mineral or country’s budget surplus.