Kenyan President William Ruto has announced a plan to invest approximately $31 billion over the next decade in large-scale infrastructure projects, marking a significant shift from his earlier commitment to fiscal tightening and reducing public debt.
The projects—covering roads, railways, airports, and power infrastructure—will be financed through a newly proposed national infrastructure fund. Ruto stated that by combining budgetary allocations, private sector resources, and proceeds from privatization, Kenya would create a substantial funding pool to support infrastructure development in an innovative manner, similar to approaches taken by other nations.
Since Ruto took office three years ago, Kenya has implemented austerity measures as mounting debt threatened national financial stability. A government attempt to raise taxes last year sparked violent protests resulting in numerous casualties. The National Treasury has since indicated limited room for further fiscal consolidation after years of effort to narrow the budget deficit.
Nairobi-based economic analyst Stellar Swakei noted that while the proposed infrastructure push could stimulate development, financing should preferably come from public-private partnerships rather than relying solely on state funds. She emphasized that despite recent improvements, Kenya has not yet re-entered an era of low borrowing costs, particularly in international markets, making exclusive reliance on the national budget potentially unfeasible.
According to Ruto, Kenya currently has a power-generation capacity of 2,300 megawatts but requires an additional 10,000 megawatts to support industrialization. The country also needs 50 new mega-dams to irrigate over 2 million acres of farmland and produce crops that are currently imported at an annual cost of 500 billion shillings ($3.9 billion).
Additional plans include constructing 10,000 kilometers of new roads, extending a Chinese-built railway line, and modernizing Kenya's main international airport. This capital expenditure mirrors development initiatives in neighboring Ethiopia, Uganda, Tanzania, and Rwanda—countries also seeking to boost economic growth and provide jobs for their expanding populations.
Ethiopia has $30 billion in mega-projects underway, including a $10 billion new airport, a nuclear power facility, and fertilizer and oil refinery plants costing approximately $2.5 billion each. Tanzania is upgrading its rail and port infrastructure, investing in a crude oil pipeline from Uganda, and planning a $42 billion liquefied natural gas facility. Rwanda similarly has plans for a new airport.
The International Monetary Fund classifies Kenya as remaining at high risk of debt distress, with over half of its tax revenues directed toward loan repayments.