The government has appointed over thirty experts from Kenya’s financial sector to create a road map for mobilization of long-term local financing for strategic state projects.
- •The committee chaired by Dr. Hosea Kili and deputized by Tom Mulwa – both from the Association of Pension Trustees and Administrators of Kenya (APTAK) – will review appropriate Public Private Partnership (PPPs) deal structures that will attract local investors.
- •Other key members in the committee include CEO of the Nairobi Securities Exchange (NSE) Frank Mwiti, Josephine Kang’ong’a from the Capital Markets Authority (CMA), Ronald Nyamosi from the National Social Security Fund (NSSF) and representatives from the energy sector, infrastructural entities, Banking, and fund managers.
- •The growing need for enhanced infrastructure coupled with fiscal pressure has prompted the government to explore public-private partnerships as an alternative to debt funding.
In a letter signed by the Principal Secretary in the National Treasury Chris Kiptoo, Treasury said the committee will also review regulatory barriers to local investment in PPPs and gauge institutional capacity of the local finance space in adequately funding local investment. The country is targeting KSh 150 billion in PPP initiatives this year, mostly in the transport sector and energy projects, according to the 2025 draft budget policy statement.
Public-Private Partnerships are collaborations between governments and private sector entities to finance, build, and operate projects.
The scale of financing needed for public infrastructure projects has seen more foreign entities seizing the opportunities, with the government tied down to expensive, often controversial deals as a result. Last year, the government sought to refurbish the Jomo Kenyatta International Airport (JKIA) and construct new power lines for electricity transmission.
To facilitate these projects, the state considered proposals from subsidiaries of the Indian-based Adani Group. After months of uproar over the details of the deals, and the indictment of the conglomerate’s founder in the US for bribery, the government cancelled the deals and went back to the drawing board.
The secretive nature of many PPP deals has also roused legal concerns. Although the government insists that public participation could delay crucial projects, pundits argue that allocating strategic infrastructure to questionable firms could expose the country to unseen risks.
Opening up local financial markets to greater participation could receive greater acceptability and support from the citizenry – as well as save the country from debt reliance and bad deals. It also carries risks of inflated costs, potential conflicts of interest, political exposure, and corruption.
