Kenya seeks private capital to expand transport and energy infrastructure

Speaking during the Commonwealth Heads of Government Meeting (CHOGM) executive retreat, Kindiki urged investors to back the fund, saying it would finance transport, energy and irrigation projects.

“This fund has already secured capital of US$2.7 billion, and this secured capital aims at subsidizing private sector investment. For every dollar, we expect to raise ten dollars from private investment,” he said.

Kindiki said the fund had been established through legislation and was governed by an independent board whose members are predominantly drawn from the private sector.

He said it would operate commercially, with public resources helping to underwrite risks faced by private investors.

“The National Infrastructure Fund is a good place to invest. It has a good governance structure, combining skills and talents from both the public and private sectors, with the private sector being the majority,” he said.

According to the Deputy President, the fund will support the expansion of Kenya’s highways and railway network, alongside the modernisation of airports and seaports.

It will also finance additional energy capacity to support industrialisation, with a particular focus on renewable energy projects.

Kindiki said renewable sources accounted for 93 per cent of Kenya’s energy mix, adding that the country intended to build on that foundation.

Agriculture is the fund’s third priority, with investments in water harvesting and storage intended to bring an additional 2.5 million acres under irrigation.

The Deputy President also outlined Kenya’s investments in youth empowerment, citing expanded technical and vocational education and training, digital infrastructure and support for youth-owned businesses.

He said Kenya had built 30,000 kilometres of its planned 100,000-kilometre Digital Superhighway.

Kindiki further told the retreat that President William Ruto had agreed to champion youth empowerment and the youth agenda on behalf of the Commonwealth.

Drawing on Kenya’s experience, he urged member states, particularly developing countries, to prioritise investment in people, technology and partnerships between the public and private sectors.