State seeks Sh1.4 trillion to develop blue economy

Foreign Affairs PS Macharia Kamau (right) addresses a past press conference with Council of Governors Chairman Josphat Nanok, Environment PS Charles Sunkuli and Kirinyaga Governor Anne Waiguru in Nairobi. [David Njaaga, Standard]

The Government has embarked on a plan to develop Kenya’s maritime resources by pumping $14.3 billion (Sh1.4 trillion) into the sector.

Foreign Affairs Principal Secretary Macharia Kamau says the sector, which now goes under the banner of ‘blue economy’, will be developed through engagement with the private sector and roping in international partners to invest in 35 key projects identified by the State.

Top among the projects is the setting up of a shipping line of international standards that would reduce the costs of hiring vessels for local maritime transport.

Kenya has incurred maritime transport costs amounting to Sh200 billion since 2014, according to data from the State Department of Maritime and Shipping Affairs.

“I know Sh1.4 trillion seems a huge sum and too ambitious for the Government. But it could be possible to raise through Public-Private Partnerships (PPPs), the State’s internal resources and support from donors. Not debt,” said Mr Kamau in an interview.

“The idea to set up a shipping line has been floated since the 1980s. It’s time we actualised that plan. A shipping line is a must for any country that wants to develop its blue economy.”

In the last budget, Treasury allocated Sh575 million to aquaculture technology development as part of a strategy to revamp interest in the blue economy.

According to Kamau, more allocations will be coming in the future as negotiations with private partners and donors start.

Committee

He also revealed that the Government has set up an eight-member committee to oversee the changes and developments in the sector.

Chief of Defence Forces Samson Mwathethe is the man leading the committee and it is comprised of experts from different ministries in matters to do with finance and maritime.

“The committee is very intact and it is doing much to ensure we achieve our blue economy goals,” said Kamau.

According to the PS, Kenya could be raking in Sh90 billion annually from ventures associated with the blue economy.