The country’s Central Bank says this will be achieved by selling a 15-year
infrastructure bond to raise funds to boost infrastructure in the country.
Kenya is carrying out a number of infrastructure projects that include
construction of power plants and bypasses funded by both donors and the
In the recent newspaper advertisement the bank added that the bond will have
a 12 percent coupon. It will take bids until October 18 and auction the paper
on October 19.
Already an estimated Sh5.56 trillion investment into infrastructure
development for Kenya is planned, the majority of which will focus on
telecommunications and power generation infrastructure.
Kenya’s investment as a percentage of GDP rose from 18 per cent in 2000 to
hit a high of 22.4 per cent in 2014 before receding to 21.2 per cent last year
and is projected to rise to 22.5 per cent this year.
Despite having made significant progress in infrastructure development in
recent years, the country’s infrastructure indicators remain below the levels
found in Africa’s middle-income economies, like Egypt or Nigeria.
Analysts say bringing Kenya’s infrastructure up to the level of the region’s
middle-income countries could boost annual growth by more than three percentage
This will be a major boost to Kenya’s transport sector that have been in the
past few months on the rising as the governments seeks to have more projects
Currently, there are many transport and water projects ongoing including the
Famous Kenya’s standard gauge railway which has been facing huddles and its
expected that the government will add more projects before the end of the year.
The government of Kenya seems to be committed towards improving the
infrastructure sector as that remains their key selling point. On the other
hand it will be a being reap to the Chinese construction companies which have
been highly winning the tenders.
Kenya’s domestic debt currently stands at 18 billion dollars, with the
amount having ballooned in the last three weeks as the government seeks to
capitalize on falling yields to borrow more cheaply from the public.