Nairobi, Aug. 5 -- A group of fund managers has set up a Sh388 billion ($ 3 billion) reserve aimed at buying out investors seeking to exit their stakes in firms through the Nairobi Securities Exchange (NSE).

An exit occurs when an investor opts to sell part or all ownership in a company. In a healthy or growing company, an investor may exit to gain a return on investment. In some cases, an exiting investor may want to access cash to invest elsewhere.

In Kenya, exits mainly occur through secondary buyouts where a strategic investor, such as a private equity fund, acquires the stake of the exiting shareholder, with investors citing low liquidity and challenges with striking fair value of their assets.

The group of fund managers, which is...