The bond to be issued between now and 2017 will fund the extension of the national fiber optic cable by 30,000km from the current 4,200km, digitising registries in all ministries and agencies and setting up national data centers.
This was announced yesterday at the launch of the National Broadband Strategy (NBS) that is billed as critical in the achievement of Vision 2030 and Jubilee's realisation of a digital government as contained in its manifesto.
Susan Mochache, the chairperson of the NBS Steering Committee said the ministry of ICT, treasury, the Communications Commission of Kenya and the Central Bank have recommended the use of an infrastructure bond to raise the funds.
"It is just a matter of working the final details and the Cabinet Secretary presenting it to the cabinet,"
The projects are estimated to cost Sh100 billion in the next five years. An additional Sh110billion will be required between 2017 and 2030.
The other financing options being explored include a Government Supported Venture Capital Fund which could raise Sh30billion and other Private Public Partnership arrangements.
The last five years have seen Kenya make major developments in ICT. Since 2009, four submarines cables: TEAMS, SEACOM, EASSY and LION have landed providing international connectivity. But less than 50 per cent of this capacity is utilised.
Deputy president William Ruto in a speech read by devolution Cabinet secretary, Anne Waiguru during the launch said that Treasury will increase budgetary allocation of ICT sector from the current 0.5 per cent to 5 per cent in the next five years.
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Autor(en)/Author(s): Winfred Kagwe
Quelle/Source: AllAfrica, 24.07.2013
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