PPPs model 'will help unlock growth potential' Kenya told

Grant Thornton Kenya Chief Operating Officer Kunal Ajmera (left) makes a presentation at the infrastructure forum on PPPs and how the Government can market the new funding concept. [PHOTO: COURTESY]

NAIROBI: An advisory firm has hailed the Government’s new model of financing infrastructure projects.

Grant Thornton, an audit and tax advisory firm has said Public Private Partnerships (PPPs) could spur sound economic growth and enhance the country’s profile in the global map.

For this to be achieved, the firm said Kenya has to intensify marketing of projects designed under the model to investors with a view to attracting financing for the outlined mega projects.

Parag Shah, an advisory partner at the firm, said the government needs to market the model to investors so that they can understand it deeply to enable them to make decisions on the kind of investments to place. Shah made these remarks during a forum organised by his organisation in conjunction with the International Project Finance Association (IPFA) at a Nairobi hotel.

“Since independence, Kenya has not mobilised adequate funds to finance projects. The Government therefore needs to work closely with the private sector to assemble more resources to fund mega projects, “said Mr Shah.

Due to low funding, Shah said the country has been grappling with high cost of doing business, mainly due to the escalating cost of energy. “The Government’s resolve to partner with the private sector to fund the projects will assist in reducing high cost of energy, transport, water bills, and enhance communication,” he added.

SLOW TAKE-OFF

The head of the PPP unit at the National Treasury Stanley Kamau explained that the new model has been identified as the net frontier for the country’s economic take-off.

“Some of these projects had taken a slow pace, subjecting the country to huge power deficits and challenges in transport. There has been a slow pace by investors to take up the projects two years after the enforcement of the PPP Act,” Eng Kamau said.

Last year the Government convened an international investment conference that attracted more than 1,000 investors. Outlining the progress Kenya had made in the energy and infrastructure sectors, Kamau agreed that PPPs have suffered slow take-off.

Since the PPP Act became effective in 2013, he said Kenya has made great progress in the area of energy and roads.