Britam Asset Managers has invested Kes1.4bn in Everstrong Capital, a private equity firm that invests in energy assets in Africa, in a bid to diversify and grow its investment portfolio.

In turn, Everstrong Capital has used the funds to buy a stake in the Heavy Fuel Oil (HFO) Athi River II Power Plant owned by Gulf Energy, one of the top oil and energy players in East Africa.

The 80.32MW diesel plant is located 25km south-east of Nairobi in Athi River. It was commissioned in October 2014 and is owned and operated by Gulf Energy, an independent power producer. Its decommissioning date is 2034, a lifespan of 20 years.

Kenneth Kaniu, CEO of Britam Asset Managers, said: “Through this investment, Britam’s Asset Managers institutional clients will achieve diversification not only across asset classes but also across currencies.” 

“This is because the returns from the power plant will be in hard currency. Britam Asset Managers clients will have more stable and less volatile returns and they will benefit from the diversification this asset provides,” he said in a statement.

Britam Asset Managers is the Asset Management subsidiary of Britam Holdings PLC. 

The Company was incorporated in April 2004 and started operations in 2006 to fill a gap in quality Fund Management and Investment Advisory services to individual and institutional investors. 

The Company is licensed as a Fund Manager by both the Capital Markets Authority (CMA) and the Retirement Benefits Authority (RBA) in Kenya. The company has grown remarkably to become an influential player in the financial services sector with assets under management of over $1bn.