Kenya to Establish Sovereign Wealth & Infrastructure Funds: President
Kenya to Establish Sovereign Wealth & Infrastructure Funds: President
The move aims to strategically invest in key sectors while avoiding the debt accumulation that has burdened public finances in recent years, Kenyan President William Ruto said.
To fund these initiatives, lawmakers have passed a law governing the privatization of state assets.
The privatization effort will begin with the sale of shares in Kenya Pipeline Company, which manages petroleum transportation infrastructure in Kenya and neighboring countries. This sale is expected to generate up to $1.01 billion.
The infrastructure fund will prioritize boosting Kenya's farming sector, its largest, to increase crop exports, Ruto stated. It will also be used to increase electricity production, as Kenya needs to add at least 10,000 megawatts beyond its current 2,300-megawatt generation capacity in order to industrialize.
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