The National Treasury has revealed that it is looking to raise resources from the local financial market to implement infrastructural projects across the country.
As highlighted by the Treasury on Tuesday, February 18, the financing and implementation of the projects will be done under the Public Private Partnership (PPP) model.
To actualize these plans, the Treasury revealed that a team of experts had already been put in place to explore the strategies that could be used to raise the funds.
"National Treasury constituted a private sector-led committee of Experts comprising professionals with expertise in finance, investment, public-private partnerships and infrastructure development to develop strategies for mobilizing capital from local financial markets to finance infrastructure projects through the PPP model.
"The committee has already begun its work and is expected to present its findings and recommendations to the National Treasury by March 31, 2025," Treasury revealed.
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Notably, it was indicated that the key focus would be put on local investors, especially those in the retail business.
"Specifically, these measures should facilitate the participation of local institutional investors, with a strong focus on retail investors," Treasury added.
The government has been shifting towards the PPP model for infrastructural projects owing to financial constraints occasioned by limited resources raised through taxes.
Additionally, given the pressures that have come with borrowing, the government has opted to seek investors who can develop projects using their own resources and recoup the money through the projects.
For instance, using the Nairobi Expressway model, the government has been keen on replicating a similar model with the Jomo Kenyatta International Airport (JKIA) expansion.
