News Column

Kenya Seeks Vision 2030 Projects Financing From U.S.

July 17, 2014

Kennedy Kangethe

The government is seeking Public Private Partnerships (PPPs) financing for Vision 2030 projects from American Investors.

The government has presented 45 projects among them key Vision 2030 projects to US investors that include the construction of the Jomo Kenyatta International Airport (JKIA) Terminal 2, Tana Delta Irrigation, 5000 Megawatts (MW) Energy Implementation Projects and the Nairobi commuter train.

This comes after a successful Sh175 billion Eurobond that earmarks funds for Vision 2030 flagship projects in transport, energy and agriculture.

In a trade and investment forum 'Doing Business in Kenya' held in Washington DC, American and Kenyan private sectors discussed partnerships aligned with the Kenyan government's economic and social transformation blueprint, the Vision 2030.

Speaking in Washington DC, Vision 2030 Director General Gituro Wainaina said the country is keen to expand and upgrade infrastructure to facilitate trade and investment and attract and sustain private sector investments in critical sectors of the economy.

"Kenya is keen to expand and upgrade infrastructure to deliver the required efficiency in terms of time and cost to facilitate trade and investment equally important to our intention to attract and sustain private sector investments in critical sectors of the economy," Wainaina said.

He urged American investors to take advantage of the newly created PPPs framework, as they did with the Kenyan Eurobond issuance.

"We are happy to note that the recently concluded oversubscribed Eurobond issue by Kenya was 66 percent subscribed by US investors with the bonds already trading at the Irish Stock Exchange at 102 percent," added the Vision 2030 head.

He said the government's entrenchment of private sector development as a central and prominent feature of national development planning is a clear display to transform the country.

"Various flagship projects at national and county government level projects will be easily achieved through PPP arrangements in modernising infrastructure in affordable and sustainable ways, with positive impact on the quality of life for all Kenyans," he said.

"At the Vision 2030, we are confident that projects such as the stringent implementation of our new constitution, construction of the LAPPSET, JKIA Terminal 2 and related infrastructural developments including energy generation, will further serve to enhance our global competitiveness," he added.

PPPs have been identified to contribute to easing budgetary constraints on social expenditure, directly enabling the Government to broaden and deepen balanced development.

Kenya expects economic growth to rise to 6.4 percent in 2015 from an initial forecast of 5.8 percent this year, as it aims to propel the country to middle-income status in under two decades.

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Source: AllAfrica

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