As President William Ruto embarks on a five-day state visit to Beijing, Kenya is aiming to shift its approach to securing funding for major infrastructure projects from China. According to Foreign Affairs Principal Secretary (PS) Korir Sing’oei, the government is looking to move away from conventional loan arrangements and explore more sustainable financing models, such as public-private partnerships (PPPs).
Sing’oei emphasized that Kenya faces rising interest rates, a volatile shilling, and growing debt repayment costs, making it necessary to explore alternative financing solutions. The PS stated, “We shall be trying to persuade our colleagues to consider a different financial model that is outside the loan arrangement.” The government’s priority is to reduce the debt burden on citizens while securing the resources needed to power its infrastructure ambitions.
One key project under discussion is the extension of the Standard Gauge Railway (SGR) to Malaba. Sing’oei revealed that the project is expected to generate sufficient revenue to cover its costs once completed, underlining Kenya’s intent to ensure that infrastructure projects are self-sustaining. The government is also considering leveraging existing funds, such as the Railway Development Fund, through instruments like securitization to unlock additional financing.
Regarding China’s involvement in future funding, Sing’oei noted that Beijing is open to various models as long as they are mutually beneficial and sustainable. While fiscal discussions will feature in the talks, Sing’oei clarified that the technical negotiations will be handled by the National Treasury and Chinese counterparts, with President Ruto not directly involved.
During the visit, Kenya and China are expected to sign several agreements, including the Nairobi Integrated Transport System and initiatives related to Technical and Vocational Education and Training (TVETs). Other expected deals include grants for the construction of hospitals in counties like Kericho, marking a significant step towards deepening bilateral cooperation in key sectors.
Kenya’s move towards sustainable financing reflects its focus on long-term economic stability, ensuring that future infrastructure projects benefit both the nation and its citizens.
