The Kenyan government has appointed more than thirty experts from the financial sector to develop a long-term local financing framework for national projects through public-private partnership.
The committee, chaired by Dr. Hosea Kili from the Association of Pension and Trustees of Kenya (APTAK) and Tom Mulwa as chair, will examine viable public-private partnership (PPP) business models to attract local investors.
Other key members of the committee include Nairobi Stock Exchange (NSE) CEO Frank Mwiti, Capital Markets Authority (CMA) Josephine Kang’ong’a, National Social Security Fund (NSSF) Ronald Nyamosi and representatives from the energy sector, infrastructure agencies, banks and fund managers.
Increasing infrastructure needs and financial constraints have led governments to explore public-private partnerships as an alternative to financial investments.
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The Treasury Department, in a statement signed by National Treasury Principal Secretary Chris Kiptoo, said the committee will also review local regulatory frameworks for PPP investments and assess the capacity of local financial institutions to invest in local funds. According to the 2025 Budget Act, the country wants to spend 150 billion Kenyan shillings on PPP projects this year, mostly on transport and energy initiatives.
Public-private partnerships are partnerships between government and private sector entities for financing, construction and operation.
The magnitude of the financial needs of public infrastructure projects has led many foreign entities to take advantage of the opportunity, while governments have been busy with expensive and often problematic projects. Last year, the government aimed to renovate the Jomo Kenyatta International Airport (JKIA) and build new power lines.
To facilitate the development of these projects, the state government decided to invest in India’s Adani Group. After months of frustration over the terms of the deal and the founder of the organization being charged with bribery in the US, the government has cancelled the deal and started rescheduling.
The secrecy surrounding many PPP transactions also raises legal concerns. While the government has encouraged public participation to delay major projects, experts believe that distributing the economic process to rogue companies could put the country at risk of losing its vision.
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Opening up the local financial market to more participants could generate greater public acceptance and support, while also diverting the country from a spiral of debt and bad business. It also carries risks such as price inflation, conflict of interest, political interference and corruption.
