The government has announced plans to invest about Sh50 billion into the private sector to provide water, housing, transport, infrastructure and other services.
The Public-Private Partnerships (PPP) Directorate says that the funds – which will be mobilised this financial year, seek to complement efforts by the government to provide key services to the public.
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PPP director-general Christopher Kirigua says that the National Treasury has identified at least six sectors for the public-private partnerships.
Some of these sectors include water, housing, transport, infrastructure, trade and industry, which the government says it intends to synergise with the private sector through the PPP framework.
“Public-private partnerships remain a key pillar in achieving the government’s fiscal consolidation agenda to mobilise private sector capital and spur economic growth and development, to be able to meet its priorities in the medium and long term,” Kirigua said during a session with the National Assembly’s departmental committee of Public Debt and Privatization.
PPP Director-General Christopher Kirigua.
The DG noted that projects will be identified and screened for commercial viability as PPPs before being considered for implementation within the National Budget to achieve this.
In this regard, the PPP Directorate expects to mobilise an estimated Sh50 billion within Financial Year 2023/24, to serve as capital for these projects.
The statement by Kirigua follows recent efforts by the government, through a number of ministries such as that of Investment, Trade and Industry and others, to mobilise and woo private investors into the country to help boost trade and investments.
And to attract investors, some of the incentives proposed by the government include a range of tax treaties, investment promotion and protection agreements, and a stable pro-investment government.
There have also been proposals for business-friendly regulatory reforms, a large pool of skilled English-speaking enterprising workers as well as the placement of the country as a strategic location for regional financial, communication and transportation hub.
Through the National Treasury, the government has also been investing in small and micro-enterprises in the country to help provide alternative services and complement efforts by the government in delivering critical services in the country.
For instance, data from the Treasury shows that from December 2020 to 31st May 2023, the government has invested at least Sh5.64 billion in 3,781 Micro, Small and Medium Enterprises across 46 counties and 12 sectors of the economy.
Out of this, 1,267 facilities have been fully repaid, representing credit amounting to Sh1.48 billion, and a guaranteed commitment of Sh371.2 million has been released for additional MSMEs.
The distribution of the Credit Guarantee Scheme facilities included 2,194 small enterprises, 1,029 micro-enterprises and 558 medium enterprises. Further, the enterprises owned by women, youth and persons with disabilities received 20 percent of the total guaranteed facilities.