Treasury forms expert team to mobilise local capital for development, reduce reliance on loans
The committee's task includes identifying viable PPP projects, such as the expansion of the Jomo Kenyatta International Airport airfield.
The National Treasury has established a private-sector-led committee to explore innovative ways of mobilising long-term capital from Kenya's financial markets to fund key infrastructure projects under public-private partnership (PPP) arrangements.
National Treasury Principal Secretary Chris Kiptoo presided over the committee's formation on Wednesday and pointed out the government's commitment to reducing reliance on loans and fostering sustainable development financing.
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The committee, chaired by Dr Hosea Kili, the president of the Association of Pension Trustees and Administrators of Kenya (APTAK), and co-chaired by Mr Tom Mulwa, CEO of Liaison Group, comprises professionals from finance, investment, infrastructure, and capital markets.
Over the next three months, the group will review regulations, deal structures, and the capacity of local markets to enhance private sector investments in major projects.
"This initiative aligns with Vision 2030's goal of transforming infrastructure through sustainable financing partnerships," Kiptoo said during the announcement at Treasury offices in Nairobi.
Identify viable PPP projects
The committee's task includes identifying viable PPP projects, such as the expansion of the Jomo Kenyatta International Airport (JKIA) airfield and the Nairobi-Nakuru-Mau Summit Highway.
These initiatives are part of the government's broader strategy to address fiscal constraints while delivering critical infrastructure.
The Treasury also highlighted the potential of Kenya's pension and insurance sectors, with combined assets exceeding Sh3 trillion, as key sources of patient capital.
"These sectors are vital for infrastructure development and will be instrumental in funding long-term projects," Treasury said.
This move comes in the wake of fiscal challenges that have limited the government's ability to fund development projects directly.
The cancellation of a previous PPP deal with India's Adani Group underscored the need to explore local funding options.
The government is also keen on leveraging infrastructure bonds and other innovative financing tools to attract private sector investment.
However, concerns remain about whether local institutions can meet the significant capital demands for large-scale projects.
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