President William Ruto says that the country is targeting to raise approximately KSh2.5 trillion to fund the National Infrastructure Fund by April.
Speaking on Friday at a Methodist Church leadership meeting at State House in Nairobi, the President said that the country had already initiated the process of raising a total of KSh5 trillion to fund infrastructure development.
“We’ve begun the journey to secure KSh5 trillion, and with God’s grace, by the fourth month of this year, we’ll have raised half of that amount.”
He said that the balance of KSh2.5 trillion would be raised incrementally over the next decade, thus becoming a financing model to fund the country’s development.
He said that the plan is to reduce debt, given that the country is accumulating approximately KSh12 trillion in debt, instead adopting investment-based financing models.
Another major aspect of the plan is the partial privatization of certain state-owned enterprises, which includes the Kenya Pipeline Company and the East Africa Portland Cement Company. This is expected to raise around KSh350 billion.
Additionally, the government plans to raise long-term financing from various sources, which includes pension plans, insurance companies, and international development finance institutions.
“As a government, we are moving from traditional debt and taxation financing to investment-driven and market-driven finance. That is why we are launching this initiative.”
Some of the major infrastructure projects that are set to benefit from the fund include the extension of the Standard Gauge Railway to Malaba and the modernization of the Jomo Kenyatta International Airport. These are major infrastructure projects that are crucial to the overall competitiveness of the region.
The government also plans to set up a Sovereign Wealth Fund which will be responsible for the management of natural resource revenues and the returns from public investments.
This will be a means for the government to create a financial cushion for the future. The infrastructure investment fund and the Sovereign Wealth Fund will be set up in a corporate manner.