Kenya Plans Sovereign Wealth Fund for Minerals, Oil Resources

Kenya intends to establish a sovereign wealth fund for revenue from minerals and petroleum to provide buffers against economic shocks and fluctuations in resource earnings.

The Kenya Sovereign Wealth Fund will have three components — a stabilization unit, an infrastructure investment arm and a segment focused on savings, according to draft legislation.

The fund won’t invest in speculative derivatives, unlisted real estate, private equity, art or commodities, according to the proposed law. It won’t lend to government entities nor provide collateral for borrowing.

Its board may pick several investment fund managers or appoint the Central Bank of Kenya as custodian, ...