There is therefore a need for banks to manage this intermediation, taking a more long-term view about the economy, which we flag as the single most-important constraint. Additionally, alternate sources of longer-term funding could be sought.
I am happy to note that banks in Kenya have started to explore solutions such as collaboration with multilateral lenders and development finance institutions to obtain long-term funding for infrastructure projects. Secondly, given the huge scale and long duration of many infrastructure projects, lenders are likely to find themselves exposed to significant credit, liquidity and political risks.