Fate of President Ruto's big ticket projects in focus as funding dries up

Kenya is facing challenging times with the government implementing tough austerity measures, leading to potential funding challenges for President Ruto's infrastructure projects. The fate of these big-ticket projects is now in focus as funding begins to dry up. CNBC Africa spoke with Sylvester Kasuku, CEO of the African Centre For Transport, Infrastructure & Regional Integration, to discuss how the funding squeeze is likely to impact key sectors and what strategies the government should focus on to stimulate economic activity. Kasuku highlighted the importance of integrating infrastructure development with affordable housing construction as a means to drive economic recovery and create sustainable growth. Kasuku emphasized the need to view housing as more than just a roof over one's head but as part of a comprehensive environment that includes essential infrastructural services such as roads, water, power, and sanitation. He proposed innovative financing approaches that could enable the government to fund not only housing projects but also the infrastructure necessary to support them. By cross-financing infrastructure development with affordable housing construction, Kasuku believes that Kenya can foster economic growth, attract businesses, and enhance overall connectivity between different regions. One key aspect of Kasuku's proposal is to allocate a portion of the funds raised for affordable housing projects towards critical infrastructure development. For example, in areas like Lamu Port, where 20,000 affordable housing units are planned, investments can also be directed to improve infrastructure connections between Lamu, Garesa, and Isiolo. By linking these areas with essential infrastructure, a conducive business environment can be created, leading to the emergence of new businesses and increased economic activity. Kasuku's suggestion extends beyond specific regions like Lamu to major cities like Nairobi, Kisumu, Mombasa, Eldoret, Nakuru, where affordable housing projects are also underway. By incorporating infrastructure development into the housing agenda, Kenya can not only address the housing shortage but also tackle the lack of connecting infrastructure in various urban centers. This integrated approach, according to Kasuku, has the potential to stimulate economic recovery by promoting diversification and economies of scale. In conclusion, Sylvester Kasuku's proposal to merge infrastructure development with affordable housing construction offers a strategic pathway for Kenya to navigate its current economic challenges. By leveraging the funds generated from housing projects to enhance critical infrastructure, the government can foster sustainable growth, attract investments, and create a conducive environment for businesses to thrive. As Kenya grapples with funding constraints and the need for economic stimulus, Kasuku's insights provide a valuable blueprint for revitalizing key sectors and driving overall economic recovery.