Nairobi Governor Johnson Sakaja has revealed that his administration is mulling over the idea of partnering with the Nairobi Securities Exchange to finance various infrastructure projects in the city.
He said utilities such as the Nairobi Water and Sewerage Company (NWSC) need to enter into public-private partnerships to allow it to implement its projects to expand water provision networks to meet city demands
"We are thinking of innovative ways of attracting capital to finance our projects in this city. Unless we become creative, we will not be able to achieve this but Kenyans are willing to put their money in there,” Sakaja stated.
The Governor was speaking during the launch of the enhanced Nairobi Securities Exchange Market Place. The event was also attended by President William Ruto.
Sakaja pledged that his administration will ensure Nairobi is pro-business, with solutions to ease the cost of doing business.
He stressed that Nairobi needs to continue positioning itself as a business and financial hub in Africa in order to attract investors.
Most mega infrastructure projects within Nairobi have been done mostly in partnership with foreign banks and the national government.
Sakaja enumerated that his administration will float a Green bond that will be used to build a mass transit system and expand the the infrastructure for waste management and water distribution.
Green bonds are specifically destined for the funding or refunding of green projects such as projects that are sustainable and socially responsible in areas as diverse as renewable energy, energy efficiency, clean transportation or responsible waste management.
"We need to offer the residents of Nairobi solutions that clear our the mess that have been witnessed over the years. We intend to float a green bond, and what we raise will be used to create order and also open up opportunities for our people and also make Nairobi work for everyone," Sakaja said.
He said the exact amount to be raised will be announced later.
The Governor added that part of the green bond will also be used on sorting out the garbage issue in Nairobi by converting waste to energy.
The intention, he said, is to deal with waste collection as well as creating employment.
He revealed that the Kenya Kwanza regime has placed special focus on domestic capital mobilisation which is critical in supporting medium to long term fiscal consolidation plans.
"The visit by His Excellency the President to NSE highlights the government efforts to stimulate private investments in public assets and projects with a view to strengthening the fiscal position of the country, reduce reliance on foreign debt as well as boost economic recovery through capital markets."
According to Sakaja, Nairobi Water and Sewerage Company (NWSC) alone will need a capital investment of about Sh30 billion to offer services and develop a proper water and waste management system that will serve city residents.
"We look forward to partnering with the Ministry of Investments, Trade and Industry and associated state corporations and agencies to conceptualise and explore county financing options through the NSE to facilitate the mobilisation of low-cost and long-term private capital to finance or refinance the county’s projects,” Sakaja said.
