The National Treasury has appointed a committee of experts to explore ways of mobilizing private sector funding for critical infrastructure and development projects.
According to an appointment notice issued by the ministry, the committee will be tasked with designing policies that enhance the participation of local financial markets in funding public-private partnerships (PPPs) and getting funding for national development.
Dr. Hosea Kili has been appointed as the Chairperson of the committee while Tom Mulwa has been appointed as the Vice Chairperson of the committee.
“This appointment follows the inaugural meeting held on January 22, 2025, where the Treasury laid out its vision for strengthening PPP investments through long-term local financing.
“Dr. Hosea Kili has been named Chairperson of the committee, with Tom Mulwa serving as Vice Chairperson. The team is expected to identify regulatory barriers, assess investment risks, and propose suitable financing structures,” read part of the letter.
Moreover, the committee has the authority to add more experts if needed.
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Duties Given to the Committee Members
The committee is tasked with developing strategies and policies to attract long-term capital from local financial markets to fund PPP projects.
This means they will be involved in collaborations between the government and private investors in infrastructure or public service projects.
Furthermore, the committee will focus on reviewing regulatory barriers. This means Identifying any legal challenges that prevent local financial markets from investing in PPP projects.
They will also be in charge of analyzing PPP deal structures, ensuring investment models match the risk appetite and preferences of local investors.
The team has also been tasked with the role of assessing market readiness by evaluating whether local financial institutions have the capacity to invest in PPP projects.
Reviewing guarantee instruments including examining financial guarantees that protect investors and identifying challenges in their issuance will also be part of the tasks.
Additionally, they have been mandated to prioritise projects by selecting and fast-tracking PPP projects that are suitable for local financial market investment.
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Why Push for PPP investment
For years, Kenya has relied on external loans and international investors to fund major infrastructure projects.
However, fluctuating global economic conditions, rising debt levels, and the need for sustainable financing solutions have pushed the government to source funding within the country.
The Treasury’s new initiative seeks to unlock domestic capital by engaging pension funds, insurance companies, banks, and capital markets to finance PPP projects.
One of the committee’s primary tasks will be to review legal and regulatory frameworks that may be limiting local financial institutions from participating in PPP investments.
Additionally, the team will assess the capacity and readiness of local markets to take on large-scale investments and explore guarantee mechanisms that could safeguard private sector funds.
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