Kenya turns to private sector to bridge infrastructure financing gap

El Capitan

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NAIROBI, Nov. 15 (Xinhua) -- The Kenyan government will rely on local and foreign investors to help bridge a yawning infrastructure financing gap, senior officials said Tuesday.
Cabinet secretary in the National Treasury, Henry Rotich, said a strategic engagement with the private sector will help the government bridge an infrastructure financing shortfall estimated at two billion U.S. dollars.
"The government requires huge capital outlay to hasten modernization of infrastructure. We therefore require active participation of the private sector to generate new financing towards key infrastructure projects like roads, ports and railways," said Rotich.
He was speaking during a national conference on public-private partnership (PPP) to finance expansion and rehabilitation of major transport networks in the capital Nairobi.
Kenya has been developing a public-private financing model to modernize transport infrastructure and accelerate industrial growth.
Rotich said the enactment of friendly policies and regulations had facilitated private sector investments in transport infrastructure, energy, telecoms and water supply.
"As the second most favorite investment destination in this continent after South Africa, Kenya has witnessed a surge in the number of institutional investors willing to venture in road construction and power projects," Rotich told policymakers and investors.
He revealed the government will mobilize additional resources from the domestic market to implement mega infrastructure projects.
The official said pension funds and capital markets could be harnessed to finance four major road projects.
Cabinet Secretary for Transport and Infrastructure, James Macharia, said institutional investors from China, Europe and the United States are keen on channeling funds towards transport infrastructure in Kenya.
 
Mwanzi1 inaonekana huelewi mambo ya kibiashara, si wewe tu Wabongo wengi, ndo maana niliona mkilalamikia wachineese wameteka miji yenu wakiuza rejareja. Mkapiga nduru eti wakenya wasiwe huru kufanya biashara Tz kama EAC!!! Mnashida hapa
 
Edward Wanjala said:
Mwanzi1 inaonekana huelewi mambo ya kibiashara, si wewe tu Wabongo wengi, ndo maana niliona mkilalamikia wachineese wameteka miji yenu wakiuza rejareja. Mkapiga nduru eti wakenya wasiwe huru kufanya biashara Tz kama EAC!!! Mnashida hapa
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Hivi ndio umeamka leo toka usingizi uliolala 1900? Hukusikia Magufuli ana mringishia Kenyatta kama kuna makampuni ya kenya yanaleta hela nyingi Tanzania badala ya ku-invest the money in kenya. FYI, if your East African, you can open your business anywhere in EA member states. Kama wewe unajuwa biashara vizuri, kwanini hawa kupi kazi ya Henry Rotich so that you could fix kenya financial mess for good? Oh wait a minute ......you don't support Jubilee .....Oh no, anyway wait for baba's time labda atakukumbuka.
 
Sungura kakosa mzabibu kasema ni mbichi. I'm better off in a country that's rapidly revamping it's infrastructure albeit a portion of it on debt than one not doing anything for fear of debt.

But seriously, nakubaliana na wewe that kenya needs to tame it's mounting debt bill, especially now that our balance of Trade is not good at all. Shida ni grants are normally afforded to LDCs, na Ile saa yetu ya kuenjoy grants as an LDC ishapita
 
Haha I like the way you separate your comments, because the first part ina vijembe vikali, (which I know why you did that) and the second part, you admit that there is a problem. Nice things are always costly, and Kenyan leadership has been overspending for quite sometime, all this to jump start the economy. But the effort will mean nothing if the world economy is still on it knees. Sikatai Kenya needs infrastructure development, but if you go over the board you'll end up where China is today, mountain of debt and ghost towns. Europe and South Africa spend so much money building their economies while there neighbours didn't, in the end they found themselves in the situation were there is no one to trade with on the neighbourhood, because the size of those nearby economies are too small to absorb any meaningful investment. At the same time the level of immigration is rising due to people of those neighbouring countries desperately looking for a better life. Kenya should know, if you grow too fast you'll end up fostering your neighbours children's.
 
Kenyas Budget 2016/17
23.8bn$
Deficit 5.4bn$

Tanzanias Budget 2016/17
12bn$
Deficit 3.4bn$

Ethiopias Budget
10.1bn$
Deficit
1.2bn$

Ugandas Budget
8bn$
Dedicit
2bn$

Rwandas Budget
6bn$
Deficit
945mn$

Badala mshindane na Uganda na Rwanda mnakazana na kitu hamuezani kabisa
 
Haha, amekimbilia kuandika only the bits you like, mbona hujaweka GDP % na inflation rate? Halafu budget ya TZ is "nearly" $14bn.
 
Mwanzi1 said:
Haja, amekimbilia kuandika only the bits you like, mbona hujaweka GDP % na inflation rate? Halafu budget ya TZ is "nearly" $14bn.
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500mn$ na 3.4bn$ deficit isnt Nearly 14bn$

Tanzania has a 21bn$ Debt
17bn$ of this being public debt

Kenya on The other hand has a 33bn$ debt.....But When you Compare Kenyas and Tanzanias GDP you wonder what is wrong

Mumelala kweli

 
Waaaw! Sikujua hilo kwamba budget ya Kenya ni kujumuisha hizi nchi zote!!! Duuuh!!!
 
Jiburudisheni na ld school new school remix kwanza, naona mko karibu kukabana koo

 
Unanifanya nakimbia from the meeting kukujibu uwongo wako, you said before that Tanzanian budget was $12bn while your own research inaonyesha $13.51bn hiyo $1.5 ulificha wapi? ....haha kama wizi.

By the way, kwanza 13.51 can be counted to the nearest number which 14 haha got you again.

On serious note, since the last budget Tshs has gain slightly to the dollar, so
29 tri. will be just be above 13.5

I'm still waiting the GDP percentage and inflation rate even though in know the numbers.

So you woud rather stay with 33bn dept strup around your neck instead of an easy 'n' manageable 21bn debt, while with all indicator are buzzing a warning that your driving youself to Lamu cliff. halafu nasema Kenyans are cleaver.

I'll tell you a secret, in five to seven year time, Tanzania and China trade deficit will be in Tanzania favour. Sasa tuambie ni lini kenya will have a trade balace with China , Europe or USA. (My be should pass that question to Mr. Rotich before election) [emoji23]
 
I like how you think you know stuff but you really dont


Data from the US government indicates that in the year 2013, out of 57 billion dollars worth of goods exported to America under AGOA, Kenya was the top exporter having exported 59% of the goods.
Mauritius came second at 33%, Ethiopia had 6% and Tanzania had 2% of the products.
Following the 10 year extension of the preferential trade agreement, the ministry of industrialization has embarked on a roadmap to push the value of exports from Kenya to the US and regional economies to 100 billion shillings in the next two years through investments in the value chain for key products.
Nonetheless, findings have shown that the Micro and Small Medium Enterprises do not have sufficient information on what can be exported, thus the low number of exported goods which are less than 100, as opposed to the maximum 6,300

 
I know, your the cleaver one, who I'm I to know anything this world huh?.

So AGOA is Kenya's life saver, 57% of AGOA products came from kenya. And what does Kenya buy from US again?, Boeing Dreamliner, not one, not two, but nine of them. What about spare parts for those dreamliner. What about other heavy machinery, what about technical services Kenya buy from US, the list can go from here to Nairobi Supermoon. Buck to the original question, when will Kenya have a trade deficit in fervour of Kenya from China, Europe or USA? Unasema Kenya is doing well on AGOA front, but with the new sheriff in town. Obama wanted to change Agoa deal to a rural electrification, kwasababu the aima of AGOA was kuwapa poor Africans kipato cha kunyanyuwa maisha yao. But US realised hela haiwafiki masikini, it only goes to rich few, rich people successfully lobby for and extension, and the contract was renewed.
 
Kenya's trade deficit is 10.1% of its gdp. Tanzania's trade deficit is 10.7% of its gdp. Both are harrowing deficits but a Tanzanian of all people shouldn't ridicule the Kenyan trade deficit

For as long as we are still developing nations in the region of ldc and lower middle income, our trade balance will always be negative. You can't produce as a country as much electricity as what a Chinese steel plant uses and expect to have a trade surplus.
 
Back to the Mada, it's a good strategy involving private firms via PPP than going for loans. Sasa what we should expect as Kenya are toll booths on various highways, bridges etc built via this method.
 
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