Mbadi rallies support for privatisation, urges shift to private capital to fund infrastructure

National
By Esther Nyambura | Nov 27, 2025
Treasury CS John Mbadi speaking during Day Three of the 32nd Institution of Engineers of Kenya (IEK) Convention. [Emmanuel Kipchumba, Standard]

Treasury and Economic Planning Cabinet Secretary John Mbadi has called for stronger support for the government’s privatisation and private capital mobilisation agenda, saying it is the most realistic path to closing Kenya’s widening infrastructure financing gap.

Speaking during  Mbadi urged engineers, private sector players, and development partners to embrace innovative financing models as the country moves away from traditional public funding for major 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,” he said.

The CS noted that Kenya is at a defining moment where the sustainability of its financing model will determine its ability to deliver inclusive growth. He said infrastructure remains the backbone of economic transformation, adding that every investment must support job creation, manufacturing, market access, and improved service delivery.

He cited roads, rail, ports, airports, energy, water, sanitation, and high-speed digital connectivity as priority sectors. Mbadi also urged engineers to deepen their understanding of the financial implications and risk allocations of different delivery models.

The CS said the government will increasingly rely on public-private partnerships (PPPs), infrastructure bonds, green bonds, and other private financing tools.

“The Government recognises that PPPs are critical in scaling up infrastructure development without overburdening public finances,” he noted, pointing to the Nairobi Expressway, MTRS Gold Projects, Kenya Affordable Housing Programme, and geothermal developments as examples of private capital at work.

Mbadi added that local participation will remain central: “This is not just good policy; it is good economics. Emphasising local expertise ensures that the money we pay out circulates within our economy and supports Kenyan livelihoods.”

The CS warned that concessional financing from traditional global partners is no longer reliable.

“Europe is in a self-preservation mode because it conflicts with Russia. The US has enough problems of its own. They have no money for us. That is the reality.”

He also urged engineers to champion green solutions as sustainability benchmarks increasingly shape global financing decisions.

“Engineering is the bridge between vision and reality,” he said, reaffirming government commitment to working with professionals and private players to develop a resilient, sustainable infrastructure roadmap.

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