Kindiki defends sale of government shares in companies, says will reduce borrowing

Prof. Kindiki lauded the actualization of the National Infrastructure Fund, which he said is an innovative way for the government to finance huge projects without burdening taxpayers with more taxes. 

“We now have a way of mobilizing enough domestic resources without piling debt and raising taxes. We are innovatively raising money by pulling resources together to fund projects,” the DP noted.  

The Deputy President spoke on Friday at the Harambee House Annex Office, Nairobi, when he received a status report on ongoing water projects across the country in a briefing by Water Cabinet Secretary Eric Mugaa and senior ministry officers.

Prof. Kindiki said the Fund has already received Ksh.100 billion from the sale of a stake in Kenya Pipeline Company and Ksh.245 billion from a similar sale in Safaricom.

“The Infrastructure Fund has been a game changer because for every shilling we invest in the Fund, we will leverage another Ksh.10. We are at the tail end of its operationalisation because the law is in place and now we have the seed money,” he added.  

The Second-in-Command said the water sector will be among the biggest beneficiaries of the resources raised through the Fund as the country seeks to raise the nation’s water connectivity above the current 76 per cent.

It will fund at least 50 mega dams and 200 mid-sized dams among other water projects some of which have been delayed for over 30 years. 

“Water is at the centre of agricultural transformation and is also important in manufacturing because of industrial use. The coming into force of the Infrastructure Fund will help us in a big way in these sectors,” the DP stated.  

Earlier, the Deputy President was also briefed on the ongoing road and infrastructure projects when he engaged senior officers from the Ministry of Roads and Infrastructure, led by Transport CS Davis Chirchir.

The DP said over Ksh.270 billion has been paid to contractors in the last year as the government accelerates completion of 8,000 kilometres of road projects across the country.

He also stated that the modernization of Jomo Kenyatta International Airport (JKIA) at Ksh.155 billion has commenced in earnest and targets a massive upgrade and expansion of the country’s biggest entry point.

“Our confidence levels as a country in responding to the needs of the country in infrastructure are higher than before. It is the first time we are taking part in the government’s stakes in some of these investments and using them to solve crucial public challenges standing between us and first-world status,” the DP said.