Kenya calls on private sector to fund infrastructure
Kenya has decided to adopt PPPs as an alternative infrastructure development mechanism.Kenya is increasingly looking to Public-Private Partnerships (PPP) to close the infrastructure funding gap that currently stands at $2 billion (€1.8 billion) annually, according to cabinet secretary in the national treasury, Henry Rotich.
He told a regional PPP forum in Nairobi that Kenya has decided to adopt PPPs as an alternative infrastructure development mechanism which will help reduce poverty, accelerate economic growth and create jobs, Xinhua news agency reports.
"The needs are enormous and so the budget alone cannot cater for this and therefore innovative approaches will have to be adopted," Henry Rotich said, adding that successful PPPs investments act as a catalyst for substantial private investment and also create higher quality assets that are well maintained.
He added that due to increased appetite from the private sector in the participation of PPPs, a national multi-purpose revolving fund has been established to provide funding support to contracting authorities in the preparation phase of a project.
African Development Bank's regional director Gabriel Negatu told Xinhua that Africa continues to experience increasing demand for infrastructure, but the continent is only able to meet half of the infrastructure needs from the public resources.
"So many Africa governments have acknowledged the crucial role of the private sector in helping to bridge the infrastructure gap," he said. Kenya has so far approved 71 PPP projects.