More than $170 billion (Sh17.7 trillion) is being spent on Kenya’s infrastructure against $206 billion (Sh21.4 trillion) that is required for the next 23 years, a report by Global Infrastructure Outlook indicates.
The amount is being used in seven sectors which include energy, telecommunications, ports, roads, air transport infrastructure, rail transport and water. However, the G20’s Global Infrastructure Hub (GI Hub ) report says Kenya needs to increase its infrastructure spending by 41 per cent to meet the United Nation’s Sustainable Development Goals (SDGs).
With Kenya’s population expected to increase by 35 million people by 2040, coupled with the economic growth of 5.5 per cent, over $310 billion (Sh32 trillion) will be needed if Kenya is to achieve the SDG’s including a fourfold increase in electricity investment.
The report outlines infrastructure investment needs globally and individually for 50 countries and seven sectors. It reveals the cost of providing infrastructure to support global economic growth and to close infrastructure gaps which is forecast to reach $94 trillion (Sh9761.90 trillion) by 2040, with a further $3.5 trillion (Sh363.47 trillion) needed to meet the SDGs for universal household access to drinking water and electricity by 2030, bringing the total to $97 trillion (Sh10,073.45 trillion).
“GI Hub is a comprehensive and detailed analysis of infrastructure investment need. It gives sector spending data that governments and funding organisations have been calling for,” says GI Hub Chief executive Chris Heathcote.
“The outlook tells us three key things, how much each country needs to spend on infrastructure to 2040, where that need is for each infrastructure sector, and what their gap is, based on their current spending trends,” he added.
Kenya will need to spend an additional Sh3.8 trillion ($36 billion) by 2040 to realise its infrastructural dream. The outlook, which can be accessed through an online tool, also reveals that $18 trillion – almost 19 per cent – of the $97 trillion, will be unfunded if current spending trends continue.