Kenya is charting a new course in infrastructure financing with a bold plan to mobilize Sh70 billion through 32 fresh Public-Private Partnership (PPP) projects in the upcoming 2025/26 fiscal year.
The move signals a major policy shift following the cancellation of high-profile deals previously awarded to India’s Adani Group.
Treasury Cabinet Secretary John Mbadi, while presenting the national budget in Parliament on Thursday, emphasized the government’s pivot to private sector participation in development, aimed at reducing reliance on public borrowing.
“We have 32 PPP projects at different implementation stages, and they are expected to attract Sh70 billion in private investment targeting key sectors including energy, health, housing, transport, and water,” Mbadi told legislators.
The new strategy comes after last year’s termination of Adani-linked projects—including the revamp of Jomo Kenyatta International Airport and the construction of major electricity lines—over allegations of opaque procurement processes and poor value for public funds.
The decision followed increased scrutiny and legal trouble faced by Adani in the United States in late 2024.
The Treasury’s PPP pipeline originally included 33 initiatives, with 15 still undergoing feasibility assessments and another five at the proposal stage as of April.
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Among the infrastructure priorities are four high-impact electricity transmission lines valued at nearly Sh31.8 billion, such as the 220kV Kiambere–Maua–Isiolo and 132kV Meru–Maua projects.
Several large-scale dam projects—including Galana, Londiani, and Ndarugu 2—are also being revived under the PPP model to improve water security and regional development.
The government is promoting the PPP model as a way to finance infrastructure through tolling, leasing, and usage contracts—offering returns to private investors while easing the country’s fiscal pressure.
This shift also aligns with guidance from international partners like the IMF, which have called for more transparency and fiscal responsibility amid concerns about Kenya’s rising debt levels.