NAIROBI, Kenya — The National Treasury has called for deeper collaboration between the public and private sectors to bridge the country’s widening infrastructure financing gap.
According to the Treasury, the country requires Sh560 billion annually but only spends Sh224 billion, leaving a shortfall of about Sh336 billion.
“Infrastructure is the backbone of economic growth. Without quality infrastructure, our dreams of transforming Kenya into a middle-income economy cannot be realised,” said Treasury Cabinet Secretary John Mbadi.
“Public resources alone are not enough to meet our growing infrastructure demands. The fiscal space is limited, yet the needs are urgent.”
Speaking at the Public-Private Partnership (PPP) Symposium in Nairobi on Monday, Mbadi said Kenya must turn to innovative financing models to avoid unsustainable borrowing.
He noted that PPPs could channel private sector capital, innovation, and efficiency into large-scale infrastructure projects while freeing public funds for health, education, and water.
The government has committed to a robust PPP framework through the PPP Act, 2021, which enables private participation in financing, construction, and maintenance of infrastructure.
Kenya also enacted the Nairobi International Financial Centre Act to attract global investors.
Mbadi announced a pipeline of projects being offered competitively to the market, including 2,820 affordable housing units in Athi River, student hostels for the University of Nairobi, a new tuition and accommodation facility at Moi Teaching and Referral Hospital in Eldoret, and a 2,000-bed hospital at Pwani Teaching and Referral Hospital in Kilifi.
The CS said Kenya’s readiness for PPP investment is bolstered by political stability, skilled labour, renewable energy capacity, and significant domestic capital with pension funds valued at Sh2.25 trillion and a banking sector holding Sh7.7 trillion in assets.
Mbadi revealed that eight PPP projects are already under implementation in roads, housing, and energy, with the government working with a private-sector-led committee to mobilise long-term domestic capital for infrastructure investment.
Mbadi urged all stakeholders, public, private, and development partners, to prioritise outcomes over bureaucracy and seize Kenya’s vast infrastructure opportunities.
