Treasury taps into PPPs to raise Sh50b

The National Treasury plans to mobilise Sh50 billion through public-private partnerships (PPPs) by June next year, as the government seeks ways to finance projects amid a biting cash crunch.

National Treasury Cabinet Secretary John Mbadi said his ministry would facilitate at least five PPPs in the current financial year. This comes amid controversy over PPP deals signed with Indian company Adani Holdings.

The Kenya Energy Transmission Company recently signed a Sh95.68 billion deal with Adani, which will see the firm build four electricity lines and two substations and operate them for 30 years.

The deal, mostly shrouded in secrecy, has attracted controversy owing to ongoing plans to have Adani take over operations of the Jomo Kenyatta International Airport for three decades as well.

In his targets for the current year, which will form his key performance indicators, Mbadi promised more accountability as he seeks to enhance fiscal discipline.

Among the measures are implementing public finance management reforms and strengthening procurement by re-engineering the end-to-end government procurement system and digitising service processes. The CS, who was recently tapped to head the Treasury, had said he would enhance transparency in government procurements.

Similarly, the Treasury said it would mobilise Sh413.2 billion in domestic resources and Sh355.5 from the external market. 

The resource mobilisation plan will also include promoting agribusiness micro, small and medium enterprises and supporting access to finance by smallholder farmers.

Mbadi said his ministry would disburse Sh1.9 billion to the Kenya Development Corporation, which is expected to trickle down to the MSMEs.

For the last three weeks, Cabinet and Principal Secretaries have been validating their performance contracts, an exercise led by Eliud Owalo, the Deputy Chief of Staff, Performance and Delivery, and Secretary to the Cabinet Mercy Wanjau.

"Through performance contracting, ministries, State departments, State corporations and other public sector institutions identify their key priorities as outlined in their strategic plans, which align with the government's policy frameworks," said Owalo, who recently also met directors of the Government Delivery Unit on strengthening mechanisms for effective delivery of government projects.

The exercise also includes assessing successes, which the Treasury listed as accelerating economic growth, achieving price stability, enhancing revenue collection and improving lending to MSMEs and PPPs.

"The economy grew by 5.6 per cent in 2023 up from 4.9 per cent in 2022, and 5.0 per cent in quarter 1 of 2024 a
demonstration of resilience," said Mbadi.

On his part, Energy and Petroleum Cabinet Secretary Opiyo Wandayi committed to accelerating the completion of projects and reviewing the institutional framework for energy development.

He targets to enhance clean energy generation, with the ministry planning to distribute 60,000 6 Kg cylinders and associated accessories to households by June 2025. 

"The Ministry of Energy and Petroleum commits to increase customer connection in support of universal access to electricity, and improve reliability and quality of electricity supply to enhance customer satisfaction and sales revenue growth facilitative of the country’s prosperity trajectory," said Wandayi.

According to the CS, his ministry had increased power generation by 5.44 per cent from 3,076 Megawatts in 2022 to 3,243 Megawatts in 2024 and power transmission lines from 7,846 kilometres in 2022 to nearly 10,000 this year.

ICT Cabinet Secretary Margaret Ndung'u pledged to create employment by promoting digital content and training 200,000 youth on digital work. Her ministry targets to create 10,000 digital jobs by the end of the financial year.

She also wants to establish 100 digital hubs through the Kenya Technopolis and 100 more through partnering with the National Assembly.

During the validation exercise, Dr Ndung'u said she would facilitate data inclusivity and digitise and automate 80 per cent of government services.

The Gender Ministry promised to institute policy, legal and institutional measures to reduce gender-based violence (GBV), involving counties in eliminating GBV.

Other commitments include promoting and preserving creative arts, culture and heritage. Some 400 youth in music will be supported to produce their music.

The ministry also plans to acquire and preserve 7,000 archival records and digitise 55,000 such records on microfilm.