Kenya requires approximately US$ 2.2billion to fill infrastructural development financing deficits, Johannes Zutt, World Bank Country Director for Kenya has said.
The country spends about US$ 1.6 billion a year as opposed to US$ 4billion sustainable expenditure required over the next decade. This represents about 20 percent of its Gross Domestic product. This is according to the Africa Infrastructure County Diagnostic Report 2010 produced by the World Bank in collaboration with the African development Bank and other development agencies.
Kenyan government is currently persuading the private sector through the Public Private Partnership (PPP) in order to come and invest more in the infrastructure in the country.
In addition, the World Bank has offered their support by loaning $43 million to support the public-private partnership through the Infrastructure Finance Public-Private Partnership Project.
Increase in its private investors and investments in the infrastructural sector will play a key role in the nation’s economic growth and create rapid job opportunities to its citizens.
On the other hand, if the country does not fix the significant financing debit it faces now, which is estimated to be around US$2.1billion yearly, it will restrict the country from growth and other developments it requires such as doing business in the country and many more, reported the World Bank director.
Currently, there are major infrastructural developments under way such as the construction of the Lamu port, LAPPSET project components – a major highway connecting the port with the Ethiopia and South Sudan, and construction of the standard gauge railway line which will be from Mombasa to Kampala.
Kenya is already undertaking construction of 10, 000km of roads, whose 3000 km first phase has already kicked off.