This archive report was first published on 16 July 2019.
Published on July 16, 2019, by Kennedy Chesoli, a New York-based development economist and global policy expert.
Public-Private Partnerships: A Recipe for Disaster? ¶
President Uhuru Kenyatta's 'Big Four Agenda' has been touted as a game-changer for Kenya's economy. At the heart of this agenda is the use of public-private partnerships (PPPs) to drive development. However, critics argue that PPPs can lead to debt difficulties and the privatization of public services.
The international community has expressed concerns about the use of PPPs, particularly in institutionally weak countries. The United Nations (UN) has warned that PPPs can lead to accountability and transparency challenges, and that they often fail to meet basic social and environmental standards.
According to a 2017 report by the Inter-Taskforce on Financing for Development, many PPPs are less efficient than traditional public procurement. The same taskforce warned in its 2019 report that the prevalence of PPPs was worsening debt difficulties in developing countries.
CSOs consider the PPP model to be dangerous, as it privatises gains and socialises risks and losses. It also diverts government attention from addressing social concerns and destroys public sector ethos, which has historically underpinned effective service delivery.
Others have found PPPs to be deceitful, with claims of efficiency and value for money being misleading. The University of Greenwich concluded that the World Bank and other global players were likely to push governments towards bankable projects instead of initiatives that truly respond to social development objectives.
As Kenya continues to pursue its 'Big Four Agenda', it is essential that stakeholder groups remain vigilant and protect public interests. The country must guard against the excesses of profit-seeking enterprises in sectors with a direct impact on the poor, such as urban housing and food security.
Mr Chesoli is a New York-based development economist and global policy expert. @kenchesoli
