Kenya's Treasury Cabinet Secretary John Mbadi has outlined a new strategy for funding major infrastructure projects, shifting from heavy reliance on borrowing to private capital, public-private partnerships (PPPs), and proceeds from the sale of state assets. The announcement was made during a press briefing on June 11, 2026, in Nairobi.
Mbadi stated that the government aims to reduce pressure on public debt by leveraging private sector investment. He emphasized that the approach would focus on projects with clear revenue streams to attract investors. The government plans to sell stakes in non-strategic state-owned enterprises to raise funds for development.
The strategy aligns with Kenya's fiscal consolidation efforts under the IMF program. According to the National Treasury, public debt stood at approximately 70% of GDP as of March 2026. The new funding model is expected to support key sectors such as transport, energy, and water infrastructure.
