Monday, December 15, 2008

New law set to unlock Kenya’s potential for FDI

Written by George Omondi, Business Daily [Kenya], December 15, 2008

A legal instrument approved by the Cabinet last week could unlock the country’s potential to attract higher foreign direct investments (FDI) inflows into the country. FDI is a key prong of Vision 2030 and the state has been betting on concessioning as a means of financing some of the blueprint’s flagship projects.

“There is a lot that can be achieved in terms of pushing the economy forward through engaging PPP in economic planning and concessioning of our infrastructure once the right rules governing such operations are established,” CBK Governor, Prof Njuguna Ndung’u, had earlier said in his review of this year’s UNCTAD’s World Investment Report which portrayed Kenya as the main loser in the region’s race to bag new investments.

Last week, the Cabinet approved a policy that provides legal and institutional framework for Public — Private Partnerships (PPP) in the country.

Under the framework, the private sector can now enter into a management contract, a lease, a concession or a build-own-operate and transfer (BoT) agreement with the government as determined by a PPP steering committee — also to be set up under the new law.