Prime Cabinet Secretary Musalia Mudavadi revealed the plans on Thursday, September 10, following a meeting with AIIB President Zou Jiayi, where Kenya presented several projects that could benefit from financing from the China-based development bank.
Mudavadi said Kenya was looking to diversify its development partnerships in order to access new sources of capital, speed up infrastructure development and create more economic opportunities.
One of the major projects discussed was the Mau Summit-Malaba Expressway, which is expected to improve connectivity between western Kenya and other parts of the country.
The proposed highway involves upgrading 243 kilometres of the route into a four-lane, access-controlled dual carriageway aimed at easing congestion along the busy corridor.
The expressway is expected to operate as a tolled road, with motorists paying to use it. The project is planned under a Public-Private Partnership (PPP) arrangement.
Kenya also presented plans to extend the Standard Gauge Railway (SGR) from Naivasha to Malaba, alongside renewable energy projects, rural road development and water infrastructure.
Another major proposal is a Ksh64 billion Panda Bond, a Chinese-denominated bond that would enable Kenya to access investors in China's capital markets.
Mudavadi said discussions around the proposed bond had advanced, with AIIB and the African Development Bank expected to play important roles in helping Kenya access the financing opportunity.
Kenya has also offered to host the AIIB Sub-Saharan Africa Office in Nairobi, a move the government believes could strengthen the capital's position as a link between Asian investors and African markets.
“Our goal is simple: mobilise global capital to build the infrastructure Kenya needs today and create the jobs, businesses and opportunities our young people need for tomorrow,” Mudavadi said.
During her visit to Kenya, AIIB President Zou Jiayi also inspected progress on the Rironi-Mau Summit Project, expressing satisfaction with the progress made so far.
The proposed financing could therefore pave the way for several major infrastructure projects, although the projects and funding arrangements remain subject to the necessary approvals and financing processes.