Kenya's National Treasury is intensifying efforts to leverage public-private partnerships (PPPs) to address the country's infrastructure funding gap, which stands at 336 billion shillings annually. For the fiscal year 2025/26, the government aims to mobilize approximately 293.6 billion shillings through 34 national government PPP projects. Treasury Secretary Chris Kiptoo highlighted that about 673 billion shillings have been allocated for development, emphasizing the role of PPPs in undertaking multiple projects without direct budgetary funding. Over the past decade, Kenya has developed a robust policy and regulatory framework to support PPPs. Concurrently, Treasury Cabinet Secretary John Mbadi stated that public resources alone are insufficient to meet growing infrastructure demands and that PPPs bring private sector capital, efficiency, innovation, and risk management benefits. In a strategic shift from fiscal consolidation, Kenya plans to stimulate the economy through privatization, beginning with an initial public offering (IPO) of Kenya Pipeline Company (KPC), targeting to raise 100 billion shillings. However, this move faces parliamentary pushback, with some MPs urging expenditure reduction instead of pursuing the KPC listing on the Nairobi Securities Exchange. Additionally, Kenya is exploring alternative financing methods, including securitizing an import levy to raise up to $4 billion for expanding its China-built railway and seeking development bank funding for airport expansion after abandoning a deal with Adani. The government is calling on public servants and private partners to embrace these partnerships to fast-track development.
Unlocking PPP Projects: State seeking to raise 293.6 billion shillings through PPPs CS Mbadi to public servants: “Let us embrace partnerships” #CitizenMondayReport https://t.co/GK8FEhCPgt
Kenya Pipeline Sale: Parliament kicks off talks on proposed privatization MPs however poke holes on the entire process Govt' aims to raise ksh.100B from the transaction #CitizenMondayReport https://t.co/SiBGuyvByw
Seeking Support From Private Partners: With a funding gap of 336 billion shillings annually, The government is now looking to the private sector to fast-track development. #NTVTonight @zeynabIsmail https://t.co/rLSxxs7BpI