GulfCap Investments Bank has entered into a Sh2.1 billion Sharia-compliant partnership with real estate equity firm Heri Investments, aiming to expand the educational footprint of Nova Pioneer schools in Kenya.
The landmark deal will see GulfCap channel funds from its Islamic finance portfolio into Heri Tripple Net Investments LP, a limited partnership structure managed by Heri Investments.
The capital will be used to acquire ordinary shares in two companies that own Nova Pioneer campuses located at Tatu City, with the combined value of the schools estimated at Sh3.23 billion.
Nova Pioneer, a leading pan-African network of schools with 15 campuses in Kenya and South Africa, is set to benefit from enhanced infrastructure and new developments under the agreement.
The institution is known for its strong emphasis on innovation, leadership, and holistic education.
Heri PLC, through its subsidiary Heri Holdings, has already committed Sh1.13 billion to the initiative. The overall investment is structured to deliver sustainable returns, with investors in the partnership projected to earn an annual return of 14.24% over a 10-year period, combining dividends and capital growth.
GulfCap CEO Saud Shahbal hailed the agreement as a strategic step toward ethical and socially impactful investing:
“This partnership aligns with our goal to diversify and unlock long-term value for our Islamic finance clients through investments that are not only ethical but also transformative to communities,” he said.
Heri Investments CEO James Kaniaru echoed the sentiment, highlighting the dual benefit of the venture:
“This is a project that delivers both educational transformation and meaningful financial returns. It’s a win-win for our investors and the future generation.”
The collaboration marks a significant step in leveraging Islamic finance for education development, and underscores growing investor confidence in the private education sector in Kenya.
