Counties

Cabinet endorses Laikipia’s Sh1bn infrastructure bond

muriithi

Laikipia Governor Ndiritu Muriithi. PHOTO | JEFF ANGOTE | NMG

Summary

  • The decision makes the county the first since the advent of devolution to float a bond to raise money in the Nairobi Securities Exchange.
  • A Cabinet meeting on Thursday chaired by President Uhuru Kenyatta heard that the approval was made under the Public Finance Management Act.
  • The approval followed that of the Intergovernmental Budget and Economic Council (IBEC), the National Assembly and the Laikipia County Assembly.

The Cabinet has approved the Laikipia County government’s request to borrow Sh1.16 billion through a domestic infrastructure bond at the stock market.

The decision makes the county the first since the advent of devolution to float a bond to raise money in the Nairobi Securities Exchange.

A Cabinet meeting on Thursday chaired by President Uhuru Kenyatta heard that the approval was made under the Public Finance Management Act.

“The objective of the infrastructure bond is to finance implementation of projects, including provision of water for agricultural production, and improvement of the business environment by upgrading markets and town infrastructure; which will provide additional jobs to the residents of Laikipia and improve their household incomes and livelihoods,” the Cabinet was told.

The approval followed that of the Intergovernmental Budget and Economic Council (IBEC), the National Assembly and the Laikipia County Assembly.

The Laikipia government has lined up about 16 projects for financing.

The proceeds from the seven-year bond will be invested in water and sewerage systems, paving roads, walkways and cyclist paths and enhancing street lighting and enforced building zones, said Governor Ndiritu Muriithi.

“The targeted projects will help spur economic activity, helping it enhance revenue collection through single business permits, parking fees, land rates as well as water and sewerage connection charges,” he said.

The choice of projects, he said, was guided by need and the ability to generate specific cash flows for repayment.

“The projects will in return generate cash flows from various user fees, levies and taxes. As we pave more towns and provide parking, we collect more fees,” he said.

The urban centres earmarked for development include Nyahururu, Nanyuki, Kinamba, Ol Jabet, Wiyumiririe, Doldol, Karuga, Naibor, Kalalu, Mouwarak and Pesi.

Bitumen standards

The upgrading and beautification of the Karuga shopping centre to the tune of Sh96 million is ongoing and is expected to be completed in eight months time, said Finance executive Murungi Ndai.

The shopping centre, which also hosts Laikipia University’s main campus, will benefit from a 1.2 kilometre of road that will be updated to bitumen standard, the construction of 4.4km of footpaths, and the installation of street lights and drainage systems.

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