President William Ruto's administration has received the greenlight to embark on an ambitious task to turn Kenya, East Africa's biggest economy, into a first world status marked by modern infrastructure, food security and everything that obtains in modern first world economy.

The plan, which received the backing of the Cabinet on Monday, envisions a future offering food security to millions of citizens, an advanced road network all powered by reliable energy supply.

"To strengthen food security, the government will undertake large-scale modern irrigation through the construction of 50 mega dams, 200 mini-dams and over 1,000 micro-dams, bringing an additional 2.5 million acres into production," the Cabinet brief that approved a KES5 trillion roadmap to transform Kenya into a first-world economy states in part.

"These investments will reinforce food and water security, support agro-industrialisation and uplift rural livelihoods," the Cabinet explained.

"Transport and logistics infrastructure will be expanded through the dualling of 2,500km of highways and the tarmacking of 28,000km of roads, extension of the Standard Gauge Railway to Malaba, expansion of regional oil pipelines, and modernisation of airports and the ports of Mombasa and Lamu, strengthening connectivity across farms, industries, cities and regional markets. 

Energy generation

"Powering this growth will be a decisive scale-up of energy generation, with at least 10,000 megawatts of new capacity added over the next seven years to support manufacturing, value addition, digital expansion, e-mobility and emerging technologies, drawing on Kenya’s geothermal, hydro, solar, wind and nuclear potential," the Cabinet despatch explains.

According to the Cabinet, Kenya targets to raise a KES5 trillion war-chest dubbed tailored around a National Infrastructure Fund and the country's Sovereign Wealth Fund to power this ambitious switchover from a developing country to a first world status.

"Approved as a limited liability company, the National Infrastructure Fund will serve as the central engine for aligning the administration’s financial resources with national development prioritise," the Cabinet explained.

To raise the required financing, President Ruto's administration has set out to sale public assets such as the ongoing strategy to sell the National Treasury's stake in Safaricom PLC.

Other initiatives will include democratisation of ownership through capital markets and the deployment of national savings to unlock large-scale private sector capital to finance priority investments while reducing reliance on borrowing and taxation. 

Privatisation proceeds

"All privatisation proceeds will be ring-fenced and invested strictly in public infrastructure projects that generate and preserve long-term value," the Cabinet said.

"Every shilling invested through the Fund is expected to crowd in up to KES10 additional shillings from long-term investors, including pension funds, sovereign partners, private equity funds and development finance institutions."

To accelerate the shift from a developing economy to Singapore's first world status standards, the Cabinet also approved the establishment of Kenya's Sovereign Wealth Fund Policy.

This avenue seeks to set up a framework that will guide on the management and investment of revenues realised from mineral and petroleum resources, dividends from public investments and a portion of the sale of government parastatals. 

"Sovereign Wealth Fund will strengthen fiscal discipline, enhance resilience and support long-term national competitiveness," the Cabinet noted.

Food security

To realise food security, the Cabinet has endorsed a bold plan to construct 50 mega dams, 200 mini-dams and over 1,000 micro-dams, with a goal of bringing an additional 2.5 million acres into production through irrigation.

Under transportation in first-world Kenya, President Ruto's government has undertaken to dual 2,500km of highways as well as tarmac 28,000km of roads.

The country's railway network will also be receving a boost with planned extension of the Standard Gauge Railway construction to Malaba town on the Kenya-Uganda border.

Also underway under the KES5 trillion economic turnaround will be expansion of regional oil pipelines, and modernisation of airports and the ports of Mombasa and Lamu to enhance logistics network linking farms, industries, cities and the regional markets. 

"Powering this growth will be a decisive scale-up of energy generation, with at least 10,000 megawatts of new capacity added over the next seven years to support manufacturing, value addition, digital expansion, e-mobility and emerging technologies, drawing on Kenya’s geothermal, hydro, solar, wind and nuclear potential," the Cabinet said.

"The National Infrastructure Fund will be overseen by a competitively appointed Board and CEO, while the Sovereign Wealth Fund will operate under a robust policy framework to ensure prudent investment, fiscal discipline and inter-generational equity."

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