Dr Patrick Ngugi Njoroge,
Central Bank of Kenya Governor.[Photo/
softkenya.com]
The Government should now start exploring other alternative means of borrowing such as Public-Private Partnerships (PPPs) among others in a bid to keep the country’s debt sustainable.
Speaking on Tuesday during the post-Monetary Policy Committee meeting held on Monday, Central Bank of Kenya Governor Patrick Njoroge, said while Kenya’s debt levels were still not a concern, there was a need to look for alternative borrowing avenues to fund projects.
Kenya has been using treasury bills, treasury bonds, infrastructure bonds, donor funds, bilateral and concessional loans among others to fund its short, medium and long-term projects.
He said the PPP model, which involves both the Government and private sector, provides better infrastructure solutions than what is wholly public or wholly private. Each participant does what it does best.
“PPP models result in faster project completions and reduced delays on infrastructure projects by including time-to-completion as a measure of performance and therefore of profit,” he said.