Local financiers to get bigger pie of PPPs in new proposal
Business
By
Macharia Kamau
| May 17, 2025
Commercial banks, insurance firms, and other financial services sector players are eyeing financing about a third of Kenya’s development expenditure through public-private partnerships (PPPs).
This is as the government pursues increased private sector participation in infrastructure development to bridge the financing gap experienced as tax revenue continues to post sluggish growth and the wiggle room for more public debt shrinks.
A new report says local investors can finance the construction of infrastructure projects, including roads, dams, ports, and power transmission lines, accounting for about 30 per cent of the country’s development expenditure in the coming years.
The government plans to spend about Sh700 billion on development projects over the coming financial year.
READ MORE
Favourites Morocco begin CHAN 2024 with solid 2-0 win over Angola
'Feel free to wear Harambee Stars jersey to work,' Ruku to public servants
Kalonzo accuses Government of blocking fans to Harambee Stars match
Harambee Stars stun DR Congo to kick off CHAN debut with a win
CAF unveils star-studded officiating teams for CHAN 2024 fixtures
KAA issues travel advisory amid road closures for CHAN 2024
Kenyans brave cold to back Harambee Stars at CHAN opener
PICTURES: Fans arrive at Kasarani ahead of Harambee Stars, DR Congo CHAN opener
South African referee to officiate Kenya-DR Congo CHAN 2024 opener
The report, which was done by a committee of experts on mobilising domestic capital for PPPs, has recommended the formation of the PPP Implementation Trust Fund (PPP-ITF) as a centralised vehicle for mobilising and deploying domestic capital for PPP projects.
The committee noted that currently, there is no dedicated statutory mechanism to secure and ring-fence payments due to private investors participating in PPP projects.
“This gap creates exposure to payment delays and fiscal uncertainty, potentially discouraging long-term private sector investment in PPP projects,” says the committee in the report that was handed over to the National Treasury on Friday.
Dr Hosea Kili, who chaired the committee that started work in February this year, said the proposed trust fund has the potential to increase the number of PPP projects to account for up to a third of Kenya’s development spending in the medium term.
Treasury Principal Secretary Chris Kiptoo said despite the need for Kenya to continue investing in infrastructure, the government does not have adequate revenues and has run out of room to borrow.
Eight OPEC countries raise production by 547,000 bpd
Saudi Arabia, Russia and six key members of the OPEC+ alliance said Sunday they will increase production by 547,000 barrels a day.Tata to expand soda ash mining in Lake Magadi
Tata Chemicals Magadi has announced a significant expansion plan for its soda ash mining activities at Lake Magadi, which aims to increase production to 600,000 tonnes within five years.Firms urged to embrace global standards
Firms have been urged to embrace International Financial Reporting Standards and International Public Sector Accounting Standards to attract capital and boost investor confidence.Why State is rushing to sell huge stake in cash-rich Kenya Pipeline
Government plans to sell at least 60 per cent of the shareholding in Kenya Pipeline Company through an initial public offering on NSE, which could net more than Sh80 billion.National Oil, Rubis deal is a debt trap, House team warns
MPs have warned against the National Oil Corporation of Kenya and Rubis Energy Kenya deal, saying the transaction could quietly hand over critical State assets to private interests.MOST READ
