Kenya needs to increase her spending on infrastructure by 41 percent to Ksh32 trillion in order to meet her infrastructure needs by the year 2040 as well as the Sustainable Development Goals.
According to the Global Infrastructure Outlook, Kenya is projected to spend Ksh17.7 trillion over the next 23 years on enhancing the country’s infrastructure including investment in electricity.
The new report outlines infrastructure investment needs globally and individually for 50 countries and seven sectors.
The report is based on among others how much each country needs to spend on infrastructure between now and the year 2040, based on their current spending trends.
The outlook further indicates that with Kenya’s population expected to increase by Ksh35 million people in 23 years coupled with economic growth of 5.5%, over Ksh32 trillion will be needed if Kenya is to achieve the Sustainable Development Goals including a four-fold increase in electricity investment.
However, this is not just a major challenge for emerging countries but also for advanced countries that have ageing systems.
The United States will have the largest gap in infrastructure spending, at 390 trillion shillings, while China will have the greatest demand, at 28 trillion dollars, representing a massive 30 percent of global infrastructure investment needs.
The road and electricity sectors will require the greatest spending owing to urbanization.
Closing the global investment gap will require annual infrastructure investment to increase from the current level of 3% of global GDP to 3.5%.
Meeting SDGs will require this to increase further to 3.8% between now and 2030.
Reporting by Regina Manyara