Deputy President Kithure Kindiki has come out strongly to defend the government's decision to sell its stakes in listed companies, insisting that the move is the only way Kenya can build big infrastructure projects without burdening Kenyans with more taxes or pushing the country deeper into debt.
Speaking on Friday at Harambee House Annex Office in Nairobi after receiving a status report on ongoing water projects from Water Cabinet Secretary Eric Mugaa and his team, Prof. Kindiki said the National Infrastructure Fund is already changing the game for Kenya's development agenda.
The DP revealed that the Fund has so far received Ksh.100 billion from the sale of the government's stake in Kenya Pipeline Company and another Ksh.245 billion from a similar sale in Safaricom.
This brings the total seed money to Ksh.345 billion, giving the government the firepower it needs to kickstart major projects without going back to the taxpayer.
"What we now have is a way of mobilizing enough domestic resources without piling debt and raising taxes. We are innovatively raising money by pulling resources together to fund projects," the DP noted.
He explained that for every shilling invested in the Fund, the government will leverage another Ksh.10 from other sources, meaning the initial capital will go a long way in financing the country's infrastructure needs.
The Deputy President said the legal framework is now in place and the government is at the tail end of operationalising the Fund.
Water Sector to Benefit Big Time
The Deputy President singled out the water sector as one of the biggest beneficiaries of the resources raised through the Infrastructure Fund. He said the government is targeting to raise the nation's water connectivity above the current 76 per cent.
At least 50 mega dams and 200 mid-sized dams will be constructed across the country, some of which have been on the drawing board for over 30 years but could not be built due to lack of funds.
The DP emphasised that water is at the centre of agricultural transformation and is also critical for manufacturing because of industrial use.
Roads and Airport Projects on Course
Earlier, the Deputy President held a separate meeting with senior officers from the Ministry of Roads and Infrastructure, led by Transport CS Davis Chirchir, where he received a briefing on ongoing road and infrastructure projects.
The DP disclosed that over Ksh.270 billion has been paid to contractors in the last year as the government accelerates the completion of 8,000 kilometres of road projects across the country.
He said the clearance of pending bills has revived the national roads programme, with contractors now actively undertaking projects in all 47 counties.
On the aviation front, Kindiki confirmed that the modernization of Jomo Kenyatta International Airport (JKIA) has commenced in earnest at a cost of Ksh.155 billion. The project targets a massive upgrade and expansion of the country's biggest entry point.
"Our confidence levels as a country in responding to the needs of the country in infrastructure are higher than before. It is the first time we are taking part of the government's stakes in some of these investments and using them to solve crucial public challenges standing between us and first-world status," the DP said.
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