World Bank to Pump Sh306bn in Kenyan Projects

The World Bank is targeting to mobilize funds for Kenya totaling Sh306 billion for the completion of Private Public partnership projects in the period between 2023 and 2027.

This is an ultimate boost to President William Ruto's plan to build affordable houses, water projects, and roads through Private Public partnerships.

These funds will be provided in the next four years starting 2023, with the World Bank expected to push for the adoption of Private Public partnerships to help lower the country’s risk of default by mobilizing more private capital, including green and climate financing.

Nairobi- Nakuru- Mau toll road is one of the Private Public partnership projects that the World Bank is expected to finance with The International Finance Corporation (IFC) expected to inject either debt or equity into the 233-kilometer highway. 

The International Development Association (IDA), another chamber of the World Bank Group will also be expected to provide a partial risk guarantee for the four-lane highway, putting the Washington-based institution in the driver’s seat of the Sh184 billion project.

“Given Kenya’s narrowing fiscal space, the country should accelerate its Public Private Partnership (PPP) program and take steps to improve governance, increase transparency, minimize opportunities for corruption, and balance risk between public and private sector players,” said the World Bank in a new report.

According to the National Treasury, by end of 2021, there were 45 Private Public partnership projects that were either under implementation or in active operation, with six of them being roads totaling 639 kilometers under the Roads Annuity and Tolling Program.

The Treasury document shows that another 39 were electricity generation projects—both renewable and thermal energy—totaling 3,034 megawatts of installed capacity.