Kenya's National Treasury Cabinet Secretary John Mbadi has announced that the country can no longer rely on increased taxes or further borrowing for major infrastructure projects, as nearly 50 percent of tax revenue is now consumed by debt repayment.

• Mbadi revealed that the government plans to transfer commercially viable infrastructure projects, such as toll roads and commercial dams, from line ministries to specialized companies to attract private capital.
• This restructuring aims to free ministries to focus on policy formulation and non-commercial rural infrastructure, while also addressing a critical need for job creation for Kenyan youth.
• The government cites the unsustainable nature of current debt servicing, which consumes close to 50 percent of tax revenue, and the inability to further raise taxes as reasons for this new strategy.