The government has terminated a Ksh700 million privately initiated proposal by Portuguese company Elevolution Engenharia, S.A. to develop the Thuci Dam Project in Embu County.
The decision was made by the Public-Private Partnerships (PPP) Committee during its 61st Ordinary Meeting held on August 26, 2026.
The committee considered a due diligence report on the proposal before deciding to end the deal and have the project pursued through another procurement process.
Elevolution Engenharia had submitted the proposal under the PPP framework, seeking to develop the dam alongside two other companies.
The government received the proposal in May 2025, after which the Ministry of Water and Irrigation carried out an initial due diligence exercise before forwarding the matter to the PPP Directorate for assessment.
The PPP Directorate later presented its findings and recommendations to the PPP Committee.
In February 2026, the committee gave conditional approval for the proposal to move to the Project Development Phase.
The approval came with conditions that required further due diligence on the project.
The Ministry of Water and Irrigation subsequently carried out physical due diligence and submitted its findings to the PPP Directorate.
Government to explore another procurement route
After reviewing the report, the PPP Committee resolved to terminate Elevolution Engenharia’s privately initiated proposal.
The committee has now directed the Ministry of Water and Irrigation to explore an alternative procurement method for the dam in line with the PPP Act.
The ministry has also been directed to update the project’s feasibility studies, establish the funding required and secure an appropriate budget allocation to facilitate procurement.
“PPP Committee, at its 61st Ordinary Meeting held on August 26, 2026, considered the due diligence report and resolved to terminate the privately initiated proposal submitted by Elevolution Engenharia, S.A.,” the ministry said in a notice dated September 15, 2026.
However, the government clarified that terminating the PPP proposal does not mean that the Thuci Dam Project has been cancelled.
“The termination relates solely to the Privately Initiated Proposal and does not constitute a termination of the Thuci Dam Project itself,” the Ministry of Water stated.
The project could still go ahead through a competitive procurement process once feasibility studies, financing arrangements and other procurement requirements have been completed.
