NAIROBI: The Government is looking to raise Sh1.8 trillion through the public-private partnership framework to fund 69 projects.
According to the PPP Unit of the National Treasury, the funds will be sourced from local and foreign investors, and will be channeled towards planned projects in the transport, energy, education, water and sanitation, and health sectors.
PPP Unit Director Stanley Kamau said the money at the Government’s disposal is not enough to implement all infrastructure development plans.
The Second Medium Term Plan (MTP II) estimates the country’s infrastructure spending need at $4 billion (Sh376.6 billion) per year, but faces a deficit of between $2 billion to $3 billion (Sh188.3 billion to Sh282.5 billion).
Kamau said the PPP model is expected to help bridge this gap. “Kenya needs infrastructure fast to achieve Vision 2030, and PPP is the way to go. The 69 projects already identified are at different levels of implementation,” said Mr Kamau at a PPP media workshop last week.
“The advantage of PPPs is that the private sector will come in, put in their money and recover it within years.” Statistics from the Treasury indicate that in the last five years, Kenya has, on average, been operating on a Budget deficit of 4.9 per cent of gross domestic product (GDP).
