Now Kenya seeks local funds to spur development

Kenya will develop new domestic financing instruments through the capital markets to reduce its foreign borrowing for infrastructure projects.

The National Treasury says in a tender announcement that it is seeking a consulting company to offer advisory services for the next two years on how the capital market can be used effectively to generate local financing for projects.

National Treasury Cabinet Secretary Henry Rotich earlier said Public Private Partnership arrangements are expected to bridge the funding gap for infrastructure development, currently estimated at $2 billion to $3 billion per year and also to bring in private sector innovations and efficiency in delivering public services.

“The government, over the past two years, has made tremendous progress in creating a good environment for Public Private Partnerships and has adopted a policy that provides a commitment to the Public Private Partnerships programme ,” said Mr Rotich.  

The consultant will assist on how “investment rules for pension funds and insurance companies can be reformed to enable their broader participation in funding infrastructure projects,” said Principal Secretary for National Treasury, Mr Kamau Thugge, last week.

Kenya is planning to develop new local financing opportunities to enable it and the private sector raise cheaper money to finance joint infrastructure projects under the Private Public Partnerships (PPPs). (Xinhua)