Infrastructure, Energy, ICT set to be allocated Ksh427b

By Ronald Owili

Infrastructure, energy and ICT are set to be allocated at least 427 billion shillings in the budget that will be read Thursday afternoon based on data from the National Treasury.

The three sectors which need heavy capital investment require the government to devise creative financing models if projects are to be implemented on time.

International bonds, Public Private Partnership (PPP) model, development partners’ support and M-Akiba are some of the financing options for infrastructure projects.

Even with the mixed reaction from Kenyans, the 2017 budget policy statement reads in part, “In order to support a rapidly-growing economy as envisaged in the Kenya Vision 2030, the Government will continue to sustain and expand the on-going public investments in roads, rail, energy and water supplies.”’

Infrastructure, energy and ICT sectors are set to consume 26.7 percent of the total budget.

The government has not ruled out going to the external bond market once more after the Eurobond in 2014 raised 174 billion shillings.

Chief Economist Mentoria Consulting Ken Gichinga roots for government mobile based security, M-akiba which has been put on hold.

Capping of interest rates has also seen banks attracted to government papers, fear is, this cash might not support capital intensive projects such as LAPSSET, Kisumu Port and other major road projects.