List of PPP Projects in Kenya

Kenya has mooted a plan to roll out Sh350 billion worth of projects under the public-private partnership (PPP) model by December, as the country looks to wean itself off an addiction to growth fuelled by public debt.

This follows the recent signing into law of the Public Private Partnerships Bill 2021, which expands the role of the private sector in PPP initiatives beyond financing to include construction, operation, and maintenance of projects.

The new law, which repealed the 2013 legislation, now provides an elaborate legal framework to cover both national and county-level PPP projects in Kenya.

It allows entities in PPP deals to single-source work through direct procurement and Privately-Initiated-Investment Proposals (PIIPs), unlike the previous decree that limited investors to competitive bidding procedures.

According to the National Treasury, a total of 45 projects have been listed in the priority list of PPP projects, with plans underway to roll them out by December.

BOO framework

The government has prioritized housing, roads, ports, electricity transmission, health, water and sanitation projects for private sector investments under the build-own-operate (BOO) framework.

The BOO model of project financing will see the investor use their funds to complete a project after which they will own and operate the facility for a maximum of 30 years before handing over the facility to the government. 

“The PPP targets to unlock at least Sh350 billion in the next 12 months in new development capital for priority projects in these sectors,” Treasury Secretary Ukur Yatani says in the budget guideline document.

The government has been struggling to attract private investors under the previous PPP Act that came into force in 2013 mainly due to a complex implementation structure that repels private investments.

Of the 45 prioritized projects, several undertakings are already being implemented or in active operation under the PPP framework.

These include six major roads covering 639km under roads annuity and tolling programs and 39 power generation schemes with 3,034 MW of installed capacity.

The roads include the 27.1km Nairobi Expressway – the country’s first double-decker road, which is set for completion by April and the proposed Sh160 billion Nairobi-Nakuru-Mau Summit Highway.

List of PPP projects in Kenya

The government had in 2020 announced plans to roll out projects worth Sh1.14 trillion under the PPP model in the 2021/2022 financial year but that did not happen mainly due to the challenges caused by the previous PPP framework.

According to the government, projects that were then in the procurement stage include the second Nyali Bridge and the Nairobi-Nakuru-Mau Summit Highway.

Operation and maintenance for the Nairobi Southern Bypass, Thika Road, and Nairobi-Mombasa Highway were said to be ready for tendering.

Phase 1 of the Road Annuity program – Lot 33 (Ngong-Kiserian-Isinya Road, and Kajido-Mashuru-Isara Road) – spanning 90.55 km were underway.

Projects that had already been tendered include Lot 6 (the project is the construction and rehabilitation of 233.3 km comprising of Kilgoris – Lolgorian (B3) Kehancha – Lolgorian, Turbo – Shikhendu – Endebess, Kakamega – Ingotse – Namukoye – Nzoia River – Musikoma (JN C33) Road, Ugunja – Ukwala – Ruambwa, Ruambwa – Port Victoria and Kimaeti – Malakisi – Lwakhakha through Njukini).

Existing roads

Contract negotiations were ongoing for the Nairobi-Nakuru- Mau Summit Highway; Lot 8 (construction and rehabilitation of the 71.5 km roads to augment the existing roads from Bomas to Magadi; Bomas to Ruiru via Dagoreti and other link roads).

Negotiations were on-going for Lot 10 (Nanyuki – Gwa Kungu (B22) Road- 83.6 km and Laisamis – Ngurunit – Nursery (South Horr) (B74) Road- 136 km), and Lot 20 (construction and rehabilitation of a total 65.5 km comprising of Kamiti-Roysambu-Kasarani-Mwiki Roads, James Gichuru-Thika Bypass, Kajiado By-pass, Komarock road).

Other projects whose contract negotiations were ongoing include Lot 8 (Bomas – Kiserian – Magadi, Bomas – Karen – Dagoret – Ruiru, Uplands Githunguri-Ngewa-Ruiru) – 71.46 km; and Lot 10 (Nanyuki- Gwa Kungu, Laisamis-Ngurunit-Nursery (South Horr)- 219.6 km.

Negotiations with private parties were also ongoing for the Lamu – Garissa- Isiolo Highway as well as the operation and maintenance of the first three berths of the Lamu Port.

Aerial cable car

PPP project agreements had been signed for the Likoni Aerial Cable Car and conditions precedent to financial closing were being addressed. The operation and maintenance for the Shimoni Port were ready for tendering.

In the energy sector, PPP project agreements had been signed for the following projects, and conditions precedent to financial closing were being addressed: 1050MW Coal Power Plant in Lamu, 105 MW Menengai Phase 1 (35 MW Sosian Menengai Geothermal Power Plant, 35 MW Quantum Menengai Geothermal Power Plant), 35MW Sosian Menengai Geothermal Power Plant Project, 35MW Quantum Menengai Geothermal Power Plant Project, and 35MW Orpower 22 Geothermal Power Plant Project.

Talks were underway for 105 MW Menengai Phase 1 (35 MW Ormat Orpower Geothermal Power Plant), while the 140 MW Geothermal PPP project at Olkaria had been tendered.

Private hospital

In the health sector, the construction of a 300-bed private hospital at the Kenyatta National Hospital has been tendered. In addition, preparations for procurement of transaction advisor were underway for the Pwani University Teaching and Referral Hospital, Amenity Wing at Kisii Teaching and Referral Hospital, Cancer Centre at Meru Teaching and Referral Hospital, and Upgrading of Nyamira Level 5 Hospital.

In the education sector, PPP project agreements had been signed for Kenyatta University student hostels, while Moi University student hostels, University of Embu student hostels, and South Eastern Kenya University student hostels were at the RFP (request for proposal) stage of procurement. Projects for Egerton University and KTCC were ready for tendering.

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In the tourism sector, a feasibility study has been completed for the proposed Nairobi International Convention and Exhibition Centre.

Water projects

In water and environment, the Nanyuki Bulk Water Supply was ready for tendering, while a feasibility study had been completed for Murang’a Water Supply and Nakuru Integrated Solid Waste Management.

In housing, negotiations with private parties were ongoing for KCB Usalama Police Housing while the Civil Servants Housing project was at the procurement stage.

In manufacturing, negotiations with private parties were ongoing for the Dongo Kundu Special Economic Zone, and the Naivasha Special Economic Zone, while preparations for procurement of a transaction advisor were underway for Muguga Agri-City in Kiambu.

In agriculture and livestock, project structuring for procurement was ongoing for the proposed Export Quarantine Station & Livestock Export Zone.

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