Kenya's president is about to green-light a massive infrastructure fund worth roughly $38 billion that pools government money with private investor cash to build roads, power plants, and irrigation systems without piling on more debt. William Ruto wants to use money from selling off state assets as seed capital to get pension funds and insurance companies interested in backing long-term projects that actually generate revenue from tolls and utility fees.
The government is basically copying what India, Canada, and the UK already did with similar setups that bring professional money managers into the picture instead of relying on slow bureaucratic processes. The whole thing works by having the public sector absorb early risks while private players come in later once projects look bankable enough to turn a profit.
Success depends entirely on whether the fund operates transparently without politicians messing with investment decisions or funneling money into garbage projects that nobody needs. Asset sales are already controversial, and critics worry the government might create hidden debts through guarantees that taxpayers end up covering if things go sideways.
The government is basically copying what India, Canada, and the UK already did with similar setups that bring professional money managers into the picture instead of relying on slow bureaucratic processes. The whole thing works by having the public sector absorb early risks while private players come in later once projects look bankable enough to turn a profit.
Success depends entirely on whether the fund operates transparently without politicians messing with investment decisions or funneling money into garbage projects that nobody needs. Asset sales are already controversial, and critics worry the government might create hidden debts through guarantees that taxpayers end up covering if things go sideways.
