Nairobi-based ICEA LION Asset Management (ILAM), an affiliate of the pan-African Imara financial services group, has exceeded $1bn level in assets under management (AUM).

ILAM’s AUM are up from $230m in 2005 to over $1bn, whereas in 2014 the asset management company had AUM growth of 25%.

Paul Sigsworth, ILAM Managing Director, said: “Sustained growth has been achieved over the past 10 years as a result of product diversification, successful efforts to widen our client-base and consistent outperformance by our asset managers.”

East Africa’s largest economy is set to grow at 6% in 2015.

Growth will pick up in 2015 and is seen as reaching as much as 6.6% in 2016 and 7% in 2017, according to the World Bank.

Sigsworth said that financial services, construction, real estate, ICT and energy are the top performing sectors in Kenya.

“The currency is stable and inflation is falling so we see many opportunities, all underpinned by significant spending by government and the private sector on infrastructure,” he said.

“For example construction is underway on a new railway from the coast up to Nairobi and work will begin shortly on a private sector initiative to build a 1000 mw coal power plant at a cost of over $ 2 billion. The upgrade of national roads and the road system in Nairobi is on-going. In the longer term the discovery of oil and gas in East Africa will benefit the region,” he added.

ILAM has managed the Imara East Africa Fund since its inception.

The fund has returned 18.36% in USD terms over 3-year period (as of 27 February).

Sigsworth said that 60% of the fund assets are in Kenya, but they are not looking to increase their allocation as they see opportunities in the rest of East Africa as well.

According to Sigsworth there is the growing number of foreign portfolio investors who are looking to increase their exposure to the Kenyan market.

“Imara markets the fund as part of its Africa Series of funds but here on the ground we are experiencing a surge in interest from foreign investors wishing to enter the Kenyan market. On the face of it the market may appear fully valued but we see strong earnings growth justifying these valuations in 2015,” he said.

ICEA LION Asset Management was established in 1984 as a research-driven investment manager.

With offices in Kenya, Uganda and Tanzania the asset manager operates across East Africa in the institutional and retail investment space.

ILAM investors comprise of insurance companies (56%), pension funds (38%), private wealth and unit trusts (6%).