Stockbrokers and investment bankers have their eyes now set on counties as they launched a programme that seeks to facilitate devolved units to access funding through the capital markets.
The County Government Development Finance Programme, unveiled by the stockbrokers’ association on Thursday, is expected to give counties access to more than Sh5 trillion.
Kenya Association of Stockbrokers and Investment Banks (Kasib) has narrowed down to specific thematic areas that will anchor the programme.
These are small and medium enterprises, credit guarantee, public-private partnership, credit rating for counties, advisory services, and trading of carbon credits.
Agriculture, health, water and sanitation, education and infrastructure are some of the sectors in counties that the association sees as attractive to investors.
Kasib Chairman Donald Wangunyu said there was enough data mined for the past decade that gives counties an edge.
The data is supported by the fact that equitable share from the National Treasury, though sometimes disbursed late, never fails to hit their accounts.
The other piece of data is taxes and levies collected at the county level as own source revenue.
“Our plan is not only for counties to achieve their development objectives but dream big,” said Wangunyu during the programme's launch in Nairobi yesterday.
He said the 10 years gave counties a broad perspective of their financial needs and expenditures, which made them well-equipped to seek alternative financing options.
The association is targeting parastatals such as water companies owned by counties owing to the increasing demand for water and sanitation services as well as cities whose population growth warrants more from county governments.
John Mwaniki, who has been selected to be chief advisor of the programme, citing the Public Finance Management Act, said the existing legislation is enough to allow counties to participate in capital markets.
He, however, noted that investors will be appraised on the uniqueness of counties when compared to corporates.
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