Even as the debate over whether or not the government should continue to employ Public-Private Partnerships (PPPs) model to develop the country's infrusture, a look into Treasury books shows Kenya currently has five operational PPP projects valued at Ksh123.1 billion and a whopping 29 projects are in the pipeline
These include projects already in the operations and maintenance phase, as well as those still under construction. In total, Kenya has 37 PPP projects, of which 8 are under implementation and 29 are in the pipeline at various stages in the project cycle.
Already, the National Treasury has announced plans to mobilise approximately Ksh293.6 billion in the 2025/26 financial year through PPP arrangements.
This approach is part of the government’s strategy to ease the burden of domestic borrowing, which has been projected at Ksh635.5 billion for the year, according to a Treasury report released during a PPP Symposium held in Nairobi on August 11.
Space Sector
The Kenya Space Agency (KSA) is pursuing the development of a commercial spaceport in Malindi. The concept was approved in April 2025, and procurement of a transaction advisor is expected in the first quarter of FY 2025/26.
The Malindi commercial spaceport being pursued by KSA will mainly be used for satellite launches and other space-related commercial activities. It is expected to attract international partnerships and private investors interested in satellite deployment, earth observation, telecommunications, climate monitoring, and scientific research.
Housing Sector
The Kenya Defence Forces Residential Accommodation project is another priority, with 3,069 housing units being built under a Ksh4.5 billion deal by China Railway Engineering Group. Currently, its work progress is at varying levels of completion across sites in Nairobi, Laikipia, Kilifi, and Nakuru counties.
The University of Nairobi Purpose-Built Student Accommodation Project will deliver 4,000 new hostel beds under a 30-year DBFOT model. The feasibility study was approved in February 2025, with procurement expected in the first quarter of FY 2025/26.
Food Security
The Galana-Kulalu Food Security Project, valued at Ksh12.5 billion, aims to bring 20,000 acres under production, yielding maize and soybeans annually. It has passed through several approval stages and reached commercial close in December 2024, with financial close pending.
Transport Mega Projects
In the transport sector, the government in July 2025 cancelled the proposed construction of the Nairobi-Mombasa Expressway at an estimated cost of Ksh468 billion after the feasibility report failed to meet criteria under the PPP Act. According to Treasury, the proposal may be resubmitted in the future.
The Nairobi-Nakuru-Mau Summit Highway, which the government has been eyeing for its breakthrough to address the persistent traffic jam challenges on the corridor, remains in development. Already, two proponents, CRBC and Shandong Hi-Speed, submitted proposals, both approved in July 2025, to progress to the project development phase, according to official documents.
The supply of smart driving licences under the National Transport and Safety Authority is another major PPP. Valued at Ksh45 billion, the project involves a 21-year contract with Pesa Print and National Bank and is at the negotiation stage after approvals in 2023 and 2024.
Energy Sector
Among these in the energy sector is the 35MW Quantum Menengai Geothermal Power Plant, a greenfield project by Toyota Tsusho Corporation valued at Ksh15.2 billion. Its construction began in February 2024 after financial close in December 2023.
The documents show the proposed construction of High Grand Falls Dam (a planned hydroelectric power station across the Tana River), valued at Ksh337 billion, was also terminated in July 2025 after its project development report failed to meet requirements, though it is another key project in the energy sector that may be subjected to open tender in the future.
