President William Ruto has explained why his administration is banking on Public Private Partnerships to enhance development in the country.
Speaking on Thursday, Ruto said the investments by private sector partners help the country create jobs and increase industrialization.
He insisted that it provides a win-win outcome for government and the private sectors.
The President went on to say that while many people expected the government would borrow money to set up the Menengai geothermal power plant, it would not be ideal to do that.
“With their investments, we create jobs and expand industrialization. And therefore there is a win-win when the private sector and public sector work together. Many people would have expected us as a government to borrow money and come and invest in this facility. That’s is not the right way to go about it,” Ruto said.
The Head of State stated that his administration does not want to burden Kenyans with more taxes or debts when the private sector can help the government achieve its end goal efficiently.
Ruto further noted that through the power purchase agreements, the state is able to create an interconnection that can help the public and private sectors grow.
“We do not want to burden the people of Kenya with either additional taxes or additional loans when the private sector can do it much more efficiently. Through the instrument of power purchase agreement, we create the nexus between public resources and private investment to unlock the potential for us to get our growth underway,” he added.
The President spoke in Menengai, Nakuru where he presided over the groundbreaking ceremony for the construction of the 35MW Orpower 22 Geothermal Plant in Menengai, Nakuru County.
Ruto also witnessed the signing of a Memorandum of Understanding between Kenya Electricity Generation Company and Kaishan Group for sustainable green ammonia collaboration.