Kenya: President Ruto Defends Private Sector Partnerships in Infrastructure Development

24 October 2024

Nairobi — President William Ruto has emphasized that partnerships with the private sector in infrastructure projects will help reduce Kenya's tax burden and reliance on debt for development.

Speaking during the groundbreaking ceremony for the 35MW Orpower Twenty-Two Geothermal Plant in Menengai, Nakuru County, Ruto highlighted the importance of public-private partnerships (PPPs) in unlocking the country's resources and driving industrialization while creating jobs.

Ruto pointed out that relying on the private sector for such projects, instead of borrowing, allows for more efficient implementation. "Many people would have expected us to borrow money to invest in this facility. This is not the right way because we do not want to burden Kenyans with additional taxes and loans when the private sector can do it more efficiently," he explained.

He noted that PPPs, including through instruments like Power Purchase Agreements (PPAs), are key to developing critical infrastructure like the Expressway and power transmission lines. These partnerships create a synergy between public resources and private investment, unlocking Kenya's growth potential.

Ruto praised the partnership with India's Adani Group in developing transmission lines, which saved Kenya from borrowing Sh95 billion. He urged Kenyans to appreciate the value of PPPs, saying they present a "win-win" situation for the country's development.

"I ask Kenyans to believe in ourselves and in our country, just as investors do," Ruto added.

The Orpower Twenty-Two facility is the third plant in the Menengai 105MW geothermal complex, showcasing the government's commitment to tapping into Kenya's vast geothermal potential to power economic growth. Ruto stressed that the project demonstrates Kenya's strength in mobilizing private investment to accelerate infrastructure development and economic transformation.

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