The Cabinet has approved a policy that provides legal framework for Public Private Partnerships (PPP), a move that could unlock the country’s potential to attract higher foreign direct investments into the country.

The framework allows the private sector to enter into a management contract, a lease, a concession or a build-own-operate and Transfer (BoT) agreement with the government as determined by a PPP steering committee - also to be established under the new law.

FDI is a key component of Vision 2030 - Kenya’s economic blue print -  and the state has been betting  on concessioning as a means of financing some of the flagship projects.

“There is a lot that can be achieved in terms of pushing the economy forward through engaging PPP in economic planning and concessioning of our infrastructure once the right rules governing such operations are established,” said Central Bank of Kenya Governor, Prof Njuguna Ndung’u.

Ndung’u was speaking at a function where he reviewed this year’s UNCTAD’s World Investment Report which showed Kenya was trailing in the region in attracting FDI.