Mbadi seeks backing for State's privatisation agenda

Treasury Cabinet Secretary John Mbadi has urged engineers and private-sector players to back the government’s privatisation agenda.

He warned that Kenya must urgently shift towards private capital as traditional international funding for infrastructure continues to decline.

Speaking at the just-concluded 32nd Institution of Engineers of Kenya (IEK) International Convention in Mombasa, Mbadi said the country can no longer rely on concessional lenders such as the International Monetary Fund (IMF), the World Bank and bilateral partners, noting that tighter global lending conditions and rising debt pressures have significantly reduced available financing for large public projects.

 
"We must come to the realisation that our traditional sources of financing our infrastructure are shrinking; indeed, they are drying up. If we are to build the Kenya we envision, then we must liberate private capital and embrace models that attract efficiency, innovation, and sustainability," Mbadi said.

The CS emphasised that Kenya must attract private investment to sustain its roads, rail, energy and water programmes.

He cited existing Public-Private Partnerships (PPPs) as proof that private capital can deliver results, pointing to the Nairobi Expressway, whose investment is estimated at approximately Sh85 billion, and ongoing geothermal projects supported by private developers. 

CS Mbadi noted that Kenya stands at a defining moment where the sustainability of its infrastructure financing models will determine its ability to deliver inclusive growth and shared prosperity.

"Infrastructure is the backbone of any nation's economic transformation. Our development aspirations, from Vision 2030 to the Bottom-Up Economic Transformation Agenda, place infrastructure at the heart of national progress. Every investment in this sector must create jobs, stimulate manufacturing, open up markets, and improve service delivery," he said.

He stated that sectors such as roads, rail, ports, airports, energy, water and sanitation, and high-speed digital connectivity are foundational to industrialisation and regional competitiveness.

Engineers, he said, must therefore understand not only technical aspects but also the financial implications and risk allocations embedded in diverse infrastructure delivery models.

The CS affirmed that Public-Private Partnerships (PPPs), infrastructure bonds, green bonds, and private finance instruments will play a central role in the government's financing strategy in the future.

"The government recognises that PPPs are critical in scaling up infrastructure development without overburdening public finances. We already have success stories such as the Nairobi Expressway, the MTRS Gold Projects, the Kenya Affordable Housing Programme, and renewable geothermal power projects that demonstrate the value of private capital and innovation in public infrastructure," said Mbadi.

Kenya’s geothermal sector contributes nearly half of the national electricity generation, and remains a key area where long-term private capital is being channelled into new plants and expansion projects.

Official data shows Kenya’s PPP pipeline is expanding, with several road, energy and municipal infrastructure projects currently under procurement.

Some of the new geothermal and expressway proposals are expected to attract tens of billions of shillings in private financing over the next two years, easing pressure on public borrowing.

Mbadi, however, cautioned that privatisation will only succeed if supported by strong regulation, transparency and well-designed contracts that safeguard public interest. 

He challenged engineers to take the lead in developing technically sound project frameworks, enforcing quality standards and ensuring that PPP models deliver efficiency without compromising national development goals.

He encouraged engineers and the wider professional community to champion models that attract capital while ensuring long-term value for Kenyans.

Mbadi said that the government is committed to ensuring that PPPs prioritise local participation so that Kenyan engineers, contractors, and suppliers remain central to project development.

"This is not just a good policy; it is good economics. Emphasizing local expertise ensures that the money we pay out circulates within our economy and supports Kenyan livelihoods," said Mbadi.

The annual IEK convention brought together engineers from across the globe, policymakers and industry experts to discuss financing, sustainability and innovation at a time when the government is seeking new avenues to fund major infrastructure projects without escalating the national debt.