The National Treasury has announced an ambitious plan to mobilise approximately Ksh293.6 billion in the 2025/26 financial year through Public-Private Partnership (PPP) arrangements.
This is part of the government's strategy to ease the burden on domestic borrowing, which has been projected at Ksh635.5 billion for the year, according to a report released by the Treasury during a PPP Symposium held in Nairobi on Monday.
Currently, Kenya has five operational PPP projects valued at Ksh123.1 billion. These include projects already in the operations and maintenance phase, as well as those under construction.
Notable completed projects include the Nairobi Expressway, 35MW Sosian (located at the Menengai geothermal field), and several road lots under the Kenya Rural Roads Authority (KeRRA) and Kenya Urban Roads Authority (KURA).
According to the data, there are 34 national government and three county government projects at different stages of the PPP pipeline. These include 10 projects at the feasibility or development stage and 10 others still awaiting transaction advisors.
Financially closed projects, some of which are under construction, add further weight to the PPP portfolio. These include the 35 MW Quantum project (Ksh15.21B) and the Kenya Defence Forces Residential Accommodation valued at about Ksh4.5 billion, currently under implementation.
Projects at commercial close include the Galana-Kulalu Food Security Project, a 35MW geothermal plant, and critical power transmission infrastructure sponsored by Africa50 and KETRACO—pointing to a multi-sectoral approach to infrastructure growth.
If the 2025/26 PPP target is met, it could significantly reduce pressure on local borrowing while accelerating key development projects in energy, transport, irrigation, and housing, according to Director General of the PPP Directorate at the Treasury, Kepha Seda.
Treasury CS John Mbadi, speaking at the event, maintained that the country stands ready for PPPs as an investment option, saying that, "I am glad to note that Kenya is ready for PPPs as an investment option."
Mbadi added that the government was hopeful that the PPPs would help Kenya economically, including the construction of roads, which have in the past stalled due to a lack of funding.
''If we succeed with all these projects, it is going to reduce the pressure on our fiscal space and help us manage our debts and their sustainability. This will also help put our borrowings in check and in control,'' he added.
The CS also rallied Kenyans to support the PPPs to enable the government to deliver better services to the nation.
