If you look at the projects countries in the region are implementing, you will realise that Kenya is really lagging behind. Ethiopia, Tanzania, Rwanda and Uganda are implementing projects that will create a solid foundation for industrialisation and economic take-off.
Ethiopia’s GERD project will deliver 6,000 MW of cheap hydropower. The project cost around $5 billion. The country is also implementing a $6 billion airport project with a capacity of 100 million passengers. These projects will turn Ethiopia into an industrial powerhouse and a regional transportation hub.
Down south, Tanzania has implemented the Julius Nyerere Hydropower Project, expected to produce 2,115 MW of electricity. This project cost $3 billion. This is massive considering that as of June 2024, Kenya’s installed capacity stood at 3,243 MW, with an effective interconnected capacity of 3,056 MW on the grid. This project will not only provide cheap power but will also expand Tanzania’s role as a regional food basket through irrigation.
Tanzania is also implementing the 2,561km SGR project connecting the port city of Dar es Salaam to neighbouring countries such as the DRC, Rwanda, Uganda and Burundi. The project’s cost is $10.04bn. Tanzania is also implementing a massive LNG export project whose value is estimated at $42 billion.
Uganda is implementing the 1,443 km East African Crude Oil Pipeline (EACOP) connecting its oil fields to the Tanga Port in Tanzania. This will cost $5.6 billion. Uganda has also completed a 600 MW Karuma hydropower project. They also have a plan to build an oil refinery. These projects will turn Uganda into a regional energy hub. Affordable energy will create a strong foundation for industrialisation. Energy exports will generate forex and funds for other development initiatives.
Rwanda is implementing the Bugesera International Airport, which could eventually reach a capacity of 14 million passengers. The cost of the project is around $2 billion. This will make Rwanda a regional transportation hub, considering it is partnering with Qatar Airways in the project. It will be competing with Nairobi and Addis Ababa.
In the last three years, the Ruto regime has borrowed KSh 3.4 trillion. That is $26 billion. This amount is almost enough to finance all the above projects, save for the LNG project. Yet we have nothing to show for all this borrowing. While other countries will be taking off economically, we will be drowning in debt.
This is why many of us are frustrated with the trajectory the country is taking. Borrowing for recurrent spending and looting is tantamount to economic suicide. We must refocus the country on a culture of fiscal discipline and evidence-led investments.
