ECONOMY & DEVELOPMENT: Treasury defends new infrastructure financing model amid public scrutiny
Treasury Cabinet Secretary John Mbadi has defended the government’s decision to establish the National Infrastructure Fund, saying the initiative is designed to finance major development projects without excessive dependence on foreign loans.
Speaking during a public engagement on economic policy, Mbadi said the fund would help Kenya mobilize local resources to support infrastructure development while easing pressure caused by rising external debt obligations.
According to the Treasury CS, the facility is expected to support long-term investments in sectors such as roads, energy, transport and water infrastructure.
Mbadi argued that Kenya cannot continue relying heavily on external borrowing to fund critical projects, especially at a time when debt servicing costs remain high.
He said the proposed infrastructure fund is intended to create a more sustainable financing model by attracting domestic investment and improving government planning for strategic projects.
The Treasury has recently faced growing pressure over the country’s debt levels and increased taxation measures introduced to stabilize the economy.
What’s Next?
The government is expected to release more details on the operational framework, funding structure and legal mechanisms that will guide the infrastructure fund.
Parliament and economic stakeholders are also likely to scrutinize the proposal closely as debate continues over Kenya’s development financing strategy.
💬 Discussion Prompt
Do you think Kenya should prioritize local financing models over foreign borrowing for major infrastructure projects?
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