Local capital markets key to project financing
SEE ALSO :The curse of handshake“An increased allocation to infrastructure - away from dominant cash and government securities - will support the sector’s local currency financing needs.” Moody’s said the recently launched framework to guide the issuance of green bonds will come in handy, particularly in financing energy projects. “Efforts to develop green bonds in the country will also be supportive of private financing of infrastructure. In February, the Capital Markets Authority launched the legal framework for green bond issuance and we expect infrastructure projects and companies will be a source of future issuance,” said the agency. Kenya is yet to report significant success in Public-Private Partnership initiative, with all the projects identified for development under the framework still at initial stages. Among the challenges include procurement delays and failure by Government to get buy-in from Kenyans, especially when it comes to setting up road tolls. “Challenges for the sector include delays in procurement and specification of the PPP arrangements, and the ability and willingness of users to pay the tolls,” said Moody’s.
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