NAIROBI, Kenya, Jun, 1 – “Why the heavy investment in infrastructure?”
It is a question president Uhuru Kenyatta posed to thousands of Kenyans during his speech at the iconic Uhuru Gardens as the country celebrated Madaraka day – His last national holiday as the country’s head of state and commander in chief of the Kenya defence forces.
During his nine-year rule, his administration has been characterized by mega infrastructural projects nationwide, more so during his second term. As critics faulted Kenyatta for spending big and increasing the country’s debt in order to actualize his dreams, the president defended his decisions saying that history would judge him right and fairly as the projects would change the lives of Kenyans for the better.
“The naysayers said that we should not invest so heavily in infrastructure. Because people don’t eat roads and floating bridges. I refused their pessimism because I know what a new road means to the farmer who has for decades been unable to get their produce quickly to the market. I refused to delay the dream of world-class ports and fishing-support infrastructure because I wanted that fisherman in our oceans and lakes to be able to gain more from the sweat of their brow,” he said.
Kenyatta said that the country’s potential was being limited by road connectivity and an expansion programme that would open up the country to the region and the world was absolutely imperative if Kenyan’s social and economic fortunes were to change.
“The result was the appreciation in the value and utility of land in many rural and peri-urban areas, instantly elevating hundreds of thousands of homes out of poverty,”
Kenyatta further sought to draw an example from the construction of the Kenya-Uganda Railway by the colonial government, which was initially dubbed,’ the railway to nowhere’ since it snaked its way through a swamp called Nairobi.
“But to the colonizers, the railway was NOT the end game. What the railway was meant to achieve was the end game. Years later, what was called the ‘Lunatic Express’ by cynics converted a swamp called Nairobi into a mega-city that is in the top five in Africa. It opened up an entire hinterland corridor running from Mombasa on the Indian Ocean to Banana on the Atlantic Ocean in the Democratic Republic of Congo. The railway had transformed the East African landscape, opening up new frontiers of trade, commerce, and urbanization,” said Kenyatta.
The president further sought to draw comparisons from that arguing that the virus infrastrucral projects have ‘brought to life’ sleepy towns that are now part of the country’s economic revamp strategy.
Big Push Investements
During his last nine years in office, Kenyatta said that his government has built over 11,000 kilometers of tarmac roads, which is six times that built by his predecessor the late president Mwai Kibaki.
In his speech, he described the efforts as part of the Big-Push Investments, Economic Acceleration, Restoration of Dignity, and Political Stabilization.
“Our world-class infrastructure, from iconic elevated expressways to floating bridges, have put Kenya on the global map. As a result, we have distinguished ourselves as an investment destination of choice, a regional and continental hub, and a leader on the African continent,”
One of the road projects that saw Kenyatta’s government being criticized by a section of detractors was the construction of the Nairobi Expressway. A 27-kilometer double-decker road that cost an estimated Sh88 billion.
Extending from Mlolongo to Westlands, the road has 11 interchanges, including the standard gauge railway terminus at Jomo Kenyatta International Airport, the Eastern Bypass, the Southern Bypass and Enterprise Road.
It is expected to reduce the traffic congestion that has plagued Nairobi residents for years.
The building of the expressway was launched by President Kenyatta in October 2019 and it is the first public-private partnership road project in Kenya.
The concessionaire -China Road and Bridge Corporation (CRBC)- is responsible for designing, financing, and building the expressway, and will maintain and operate it during the concession period.
The PPP arrangement allows private investors to own infrastructure projects for a given period to recoup their funds before ceding the ownership to the State.
On completion, the road is expected to ease traffic flows in and out of the city centre.
“Big Push Investments are bold investments. They call for surgical, and sometimes ruthless execution. Such undertakings cannot be fed on the milk of meekness. They need an attitude that shows the contempt card to those who dwell in negativity and naysaying. For instance, if we had told you that we were going to build an expressway that snakes through the heart of Nairobi in only 18 months, the pessimists would have said it was impossible. Yet we did it!! And, if we had said that we would do it without a single coin from the taxpayers – except for relocation of utilities, including electricity, water, and fiber optic cable, many would have said we were dreaming. But we did it,” said a firm Kenyatta.
Moja Expressway, a subsidiary of CRBC, will operate the road for 27 years to recoup the money through toll fees.
Kenyatta also highlighted several other projects including expanding the country’s electricity connectivity saying that more Kenyan homes are connected to electricity than any other African country.
Access to water also features prominently with the president saying Kenyans have been accorded the dignity of access to water and sanitation.
“We did this by building dams (including Thiba Dam in Kirinyaga, Yamo Dam in Samburu County) and we are on course to complete and start others, notably: Thwake Dam (Kitui/Machakos/Makueni), Mwache Dam (Coast Region), Karimenu Dam (Kiambu), Siyoi Muruny (West Pokot), Bute Dam (Wajir), and Soin Koru Dam (Nyanza),” he said.
Addressing Kenya’s Debt Crisis
When he came into office in 2013, President Uhuru Kenyatta stepped up borrowing, driving up debt to the current level of more than 60 per cent of GDP, versus just over 40 per cent when he took over.
Recently, the national treasury proposed an increase in debt ceiling from the current Sh9 trillion to Sh10 trillion in order to enable the government to borrow more to finance the Sh3.33 trillion budget for the 2022/23 financial year.
In his address again via rhetoric question Kenyatta asked Kenyans, “How much is ‘too much’ borrowing? When does borrowing become ‘too much and unbearable to a nation?”
Kenyatta argued that debt is only a burden to a nation if the nation is led by a cabal of looters farthing observing that, if in the hands of a visionary administration, it can be a catalyst for rapid development.
The president made reference to South Korea’s ‘economic miracle’ transformation and even Britain’s borrowing that spurred economic change over 100 years as prime examples that borrowing is not always a ‘bad’ thing further challenging Kenyans to be decisive in the choices they make.
“What this means is that nations that have advanced have not used their own money. They have borrowed from others to catch up and become economic leaders. In just 9 years, e have moved from being the 12th largest economy in Africa to the 6th largest economy and growing. We have almost tripled the wealth of our nation from GDP of 4.5 trillion in 2013 to lose to 13 trillion currently,”
As of June 2021, Kenya’s debt as a percentage of GDP was 68, a figure which is higher than the proposed 55 percent figure.
Political Stability
While reiterating the need to do better, Kenyatta cited political stability as the reason that his government has been able to achieve so much within such a short amount of time.
“And all this happened because of the political stability achieved through and because of the handshake,” he noted.
Kenyatta has now challenged the incoming government to learn from the foundation his government has set insisting that it is imperative for the growth and stability of the nation.
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