Kenya has introduced Public Private Partnerships (PPPs) to spur the participation of the private sector in infrastructure development in the country.
The Director of Public Private Partnerships (PPPs) in the National Treasury Engineer Stanley Kamau, said the introduction of PPPs projects in Kenya’s infrastructure development is a major milestone for the government in providing services at an accelerated and an affordable rate.
In an interview with the media at the National Treasury, Engineer Kamau said the PPPs infrastructure projects the government has engaged are unique because it is the first time projects have deviated from the traditional procurement process.

In 2013, Kenya enacted the PPP Act which paved the way for capital and infrastructure projects to gravitate towards PPPs. The national list of priority projects currently includes over 60 infrastructure projects earmarked for PPPs. This in essence allows for risk sharing while encouraging innovative ideas by the private sector.
Engineer Kamau said PPP projects involve long-term contracts and private partners aimed at providing public infrastructure or services, where the private partner bears significant risk in terms of financial, operational and management responsibility.
“PPP projects have various delivery models, like service contracts, and concessions which focus on long-term agreements”, he added.
“The PPP Act requires a transaction advisor to guide the government from the PPP procurement process to its financial close. This is so because many agreements ought to be reached and a proper feasibility study carried out to give comfort to both investor and the government”, Engineer Kamau said.
The government has identified and prioritized some specific projects under the PPP model. The typical contractual structure involve government agencies, a Special Purpose Vehicle, Contractors, lenders and equity providers.
For Kenya to benefit from such arrangements, an efficient procurement process must be put in place which is clear, transparent, robust, fair, cost-effective and competitive, so that the highest value for the procuring authority is attained.