Kenyan President targets infrastructure
27 October 2008
President Mwai Kibaki of Kenya has said that the country needs to spend KES 360 billion (US$ 4.5 billion) over the next 5 years to improve and expand its dilapidated infrastructure.
The Kenyan government, much criticized for the country’s bad roads, has based its long-term economic growth strategy on the provision of a working infrastructure. “This means we need approximately KES 72 billion (US$ 900 million) every financial year for infrastructure development,” said Mr Kibaki.
During the 2008 to 2012 period, Mr Kibaki said there would be building or upgrading work on 64500 km of roads at a cost of KES 186 billion (US$ 2.3 billion).
“Money will also be spent on modernising and expanding the rail network and developing Mombasa port as well as building a new port at Lamu,” said Mr Kibaki.
The Kenyan government hopes to issue several bonds this financial year, including its first sovereign bond for US$ 500 million, to finance infrastructure projects. “The government will create new laws to govern public-private partnerships that will allow companies to invest in public infrastructure projects in Kenya,” said Mr Kibaki.
“We are encouraging the private sector to seize the opportunity and play a more active role in the provision of infrastructure services in Kenya,” concluded Mr Kibaki.STAY CONNECTED
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