11th September, 2018


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This Policy Statement declares the Government of Kenya’s practice and stance on the conditions under which Government may make various supports available to implementers of public projects, in order for such investments to be more secure and bankable. It defines what a Government Support Measure is, traces the history of their usage and applications in Kenya, identifies the problems faced under current administrative practices supporting their issuance, and declares the specific policy rules that will, from the date of this Policy, apply to the practice of providing Government Support Measures.


The Policy is being declared at a time when Government has intensified implementation of its policy on a private sector-led growth strategy, and in the wake of extensive and expansive commitment to scaling up of public infrastructure across all economic sectors. Government understands that Government Support Measures impose various financial costs on public finance, and create varied forms of contingent liabilities on Government, with the risk that in the event such contingent liabilities crystallize, their financial impact on public finance may become substantially disruptive. This Policy is aimed at establishing practice principles that minimize and manage the risks created by every Government Support Measure.


The Policy applies to all public institutions at both national and county levels of Government. It also applies to all private sector parties involved in public investment programmes, including their financiers. Ultimately, this Policy promotes the intentions and spirit of the Constitution with respect to public finance management, by advancing the cause of fiscal responsibility, sustainability and accountability.


In Section 1, this Policy declares the objectives and rationales for its issuance. In Section 2, it identifies the 11 main problems with the current practice, and charts a historical outlook on the evolution of Government Support Measures. In Section 3, comparative approaches in the issuance of Government Support Measures is traced. In section 4, the current legal and institutional framework is reviewed, in a situational analysis that establishes the current practice is sub-optimal, and needs to be improved. In Section 5, the 10 main policy statements are set out, covering the entire value chain of a Government Support Measure –application, assessment, negotiation, approval and management. In Section 6, the legal and institutional implications of this new policy framework are set out.

This Policy will be implemented immediately upon approval, and it is expected it will greatly contribute to Government’s overall financial risk management strategy and frameworks.