Kenya Must Boost Financing to Drive Sustainable Growth

At the just concluded Kenya International Investment Conference (KIICO) 2026, financial experts and industry leaders have reached a firm consensus that Kenya’s ability to accelerate economic development and attract tangible investment hinges on how effectively the country can coordinate, structure, and deploy capital.

Speaking during the “Financing Ecosystem” side event, the MD and CEO of Absa Bank Kenya Abdi Mohamed emphasized that the nation must shift away from fragmented financing approaches toward more integrated, ecosystem-driven models to successfully bridge the infrastructure gap.

The Absa CEO noted that Kenya stands at a pivotal moment where the ambition to accelerate industrialization, deepen inclusion, and build resilience in an increasingly complex global environment is clear.

Addressing the forum, he stated, “Kenya stands at an important moment. The ambition to accelerate industrialisation, deepen inclusion, and build resilience in an increasingly complex global environment is clear. The question before us is not whether capital exists to support this ambition, but how effectively we can mobilise and deploy it.”

He maintained that the primary challenge is no longer the availability of funds, but the mechanisms through which the public and private sectors mobilize that capital.

Reinforcing this need for a strategic pivot, the Permanent Secretary for the National Treasury Chris Kiptoo highlighted the fiscal urgency of these reforms, noting that the country currently spends 40% of its ordinary revenue on debt service.

The Permanent Secretary emphasized that such a high debt-service-to-revenue ratio is a trend the government is determined to reverse, stating, “To averse these trends, as Treasury we are pursuing reforms to bring this down. Continued borrowing is not a sustainable strategy for prosperity. We are implementing structural reforms across both revenue and expenditure to mobilize capital more effectively. This shift is supported by the President’s recent signing of the National Infrastructure Bill, which introduces a new framework designed to reduce reliance on public debt in favor of a sustainable, investment-led approach.”

This shift requires a departure from traditional commercial banking in order to meet the nation’s vast development needs. While capital exists across government, development finance institutions, and the private sector, large-scale project funding remains constrained by inconsistent structuring and operational silos. To unlock value across entire value chains, the discussions highlighted a need to look more deliberately at domestic capital sources such as pension funds, institutional investors, and other long-term pools that represent sustainable opportunities for the country. By focusing on execution across the entire ecosystem, Kenya can move beyond intent to achieve delivery at scale.

The path forward requires significant clarity in policy frameworks, the strengthening of project preparation, and the creation of clear risk-sharing mechanisms to attract a broader range of investors. When public-private partnerships are well-structured, they align public priorities with private capital to ensure that projects are positioned for successful execution. If the country succeeds in these efforts, the impact will extend far beyond infrastructure to shape the overall competitiveness of the economy, deepen capital markets, and accelerate truly inclusive growth.

The conference concluded with a call for unprecedented coordination between government, financial institutions, and development partners to unlock the long-term capital flows essential for Kenya’s future.

The Kenya International Investment Conference (KIICO) 2026 brought together 500 global investors, policymakers, and industry leaders, collectively representing trillions of US dollars in capital, to explore Kenya’s investment landscape and forge partnerships capable of creating millions of jobs while reinforcing Kenya’s position as Africa’s leading destination for doing business.