Public Private Partnerships Directorate - Kenya

At the Mombasa Regional Highway Investors Conference, the PPP Director General, @EngKefaSeda, shared insights on mobilizing private capital to transform Kenya’s highway infrastructure. Here are his thoughts: @SDPI_AM @KeNHAKenya @KeTreasury

Public Investments State Department Updates Parliament on PPP Reforms and Key Infrastructure Projects The Principal Secretary for Public Investments and Assets Management, Mr. Cyrell Wagunda, today appeared before the Debt and Privatization Committee of the National Assembly to provide an update on ongoing reforms in public investments and the status of Public Private Partnership (PPP) projects. During the session, the PS highlighted several major PPP projects currently under operation and maintenance. These include the Nairobi Expressway, a 27-kilometre dual carriageway linking Mlolongo to James Gichuru Junction, as well as the road annuity projects across counties such as Nyeri, Kirinyaga, Murang’a, Embu, Tharaka Nithi, Laikipia, Kakamega, Vihiga, Bungoma, and Busia. Also in operation are key energy and agriculture initiatives, including the 35MW Sosian Menengai Geothermal Power Plantand the Galana Kulalu Food Security Project. He further briefed the Committee on projects under construction, including the KDF Residential Accommodation Project, which will deliver 3,069 housing units for the military personnel, as well as geothermal developments such as the Quantum Menengai and the Orpower 22 Menengai Geothermal Power Plants. The government is also advancing the 175-kilometre Nairobi-Nakuru-Mau Summit four-lane dual carriageway under the PPP framework. PS Wagunda also revealed that a number of PPP projects are currently at the concept and feasibility stages, undergoing the necessary structuring to enhance their attractiveness to private sector investors. To accelerate their progress, he noted, the PPP Directorate has launched a Rapid Results Initiative (RRI) to fast-track the identification and prioritization of viable projects in collaboration with contracting authorities. “Under this initiative, selected projects will undergo detailed feasibility studies to determine their commercial viability before being taken to market”, he added. The PPP Director General, Eng. Kefa Seda, clarified to the Committee that all PPP projects undergo rigorous value-for-money assessments as part of business case development. These evaluations compare lifecycle costs - including construction, operation, and maintenance - with traditional public financing models, while also assessing efficiency gains such as timely delivery and adherence to budgets. “Projects that demonstrate clear financial and operational advantages under the PPP model are then approved to proceed to market, ensuring optimal use of public resources while leveraging private sector expertise”, he said. The Public Debt and Privatization Committee oversees government borrowing, public debt management, and privatization of state assets, ensuring transparency, sustainability, and value for money. The Committee is chaired by Hon. Abdi Shurie. @EngKefaSeda @SDPI_AM @KeTreasury @JohnMbadiN

Kenya Advances Nuclear Financing Talks at Global Conference A Senior Financial Analyst at the Public Private Partnerships Directorate, Esther Kabue, joined a distinguished panel at the International Conference on Nuclear Engineering (ICoNE) to discuss innovative strategies for mobilizing finance for nuclear energy projects. As Kenya positions itself for a high-growth future in nuclear energy , the experts emphasized that the significant upfront capital required for nuclear infrastructure makes one thing clear: 'the synergy between the Government and the private sector is no longer an option - it is a strategic necessity'. By leveraging PPPs, Kenya can accelerate the development of reliable, long-term baseload power with nuclear energy as a key driver to support industrial growth and national development goals. @kabue_esther @EngKefaSeda @SDPI_AM #NuclearEnergy #CleanEnergy #PPPs #ProjectFinance #KenyaVision2030 #InfrastructureFinance #EnergyTransition 🇰🇪

Kenya Eyes Nuclear Energy to Power Future Growth Under the PPP Framework Kenya is accelerating plans to introduce nuclear energy into its power mix as electricity demand continues to rise, the PPP Director General, Eng. Kefa Seda, has said. Speaking on “Financing Nuclear Energy Within Kenya's Energy Demand Trajectory and PPP Framework” at the ongoing International Conference on Nuclear Energy in Nairobi, Eng. Seda observed that the country already stands out as a global leader in clean energy, with over 80% of electricity generated from renewable sources. “Geothermal leads at about 45%, followed by hydro at 25%, with wind and solar steadily expanding,” he noted. He, however, explained that with electricity demand growing at an estimated 5-7% annually - driven by industrial expansion, urbanization, and digital growth, Kenya is seeking additional baseload power that is stable, predictable, and scalable. Nuclear energy, he said, offers a dependable solution to complement Kenya’s renewable base and ensure long-term energy security. He observed that while Kenya’s current energy mix is both robust and sustainable, it faces structural challenges. "Hydropower remains vulnerable to climate variability, wind and solar depend on weather conditions, and geothermal expansion is limited by high capital costs and geographical constraints", he explained. To address this, he said, the Government is pursuing a phased nuclear power programme aligned with the Bottom-Up Economic Transformation Agenda, which prioritizes reliable and affordable energy as a driver of economic growth and improved livelihoods. He said nuclear projects require significant capital - typically between USD 5 billion and USD 10 billion per reactor - alongside complex technical and regulatory frameworks, making them viable candidates for PPP financing. He revealed that Kenya is exploring nuclear energy financing through Public Private Partnerships (PPPs) by leveraging blended funding models that combine public resources, private investment, climate finance, and support from Development Finance Institutions and Export Credit Agencies. However, as the country advances its nuclear ambitions Eng. Seda emphasized that collaboration between the Government, investors and development partners will be key to delivering reliable, affordable, and sustainable energy. “The pace of our economic progress will depend on the availability and cost of energy”, Eng. Seda observed. “With nuclear power, we have an opportunity to secure long-term energy stability if we get it right,” he added. @EngKefaSeda @SDPI_AM @KeTreasury @nuclearkenya #NuclearEnergy #KenyaEnergy #PublicPrivatePartnerships #EnergySecurity #CleanEnergy

I had the privilege of joining key stakeholders for a high-level engagement on the development of strategic port infrastructure under the PPP Framework, including Mombasa Port Berths 11–14, Mombasa Port Container Terminal 1 (CT1), Lamu Port Berths 1–3, and the Lamu Special Economic Zone (SEZ). The forum provided an important platform to review the outcomes of a feasibility study sponsored by the National Treasury in collaboration with the Kenya Ports Authority (KPA), and to receive valuable input from stakeholders to inform the transaction structure. The forum also helped strengthen institutional alignment among partners and provided an opportunity to advance a shared vision for modern, efficient port infrastructure capable of supporting the country’s expanding trade volumes. The planned enhancements will significantly increase operational capacity, improve vessel turnaround times, and enhance the reliability of Kenya’s ports as strategic gateways for regional and global commerce. Sustained collaboration among stakeholders remains essential as we mobilize investments that strengthen maritime logistics, support economic growth, and position Kenya’s ports to meet the evolving demands of international trade.

Kenya Meets Development Partners to Accelerate Infrastructure Development The Public Private Partnerships (PPP) Directorate today held a strategic partnership meeting with foreign missions to accelerate the implementation of Kenya’s PPP programme. The engagement, which was chaired by the Principal Secretary for the State Department of Public Investments and Assets Management, Mr. Cyrell Wagunda, brought together a cross-section of development partners and members of the diplomatic community. In his opening remarks, PS Wagunda emphasized that infrastructure development and improved public service delivery remain central to the Government’s economic transformation agenda. “Achieving our infrastructure development goals require innovative financing approaches, mobilization of private capital, and stronger development cooperation through the PPP framework”, he noted. He also highlighted the critical role of development partners in providing technical assistance, project preparation funding, guarantees, concessional financing, and policy support to make PPP projects bankable and investment-ready. PS Wagunda described the engagement as the start of a more structured partnership between the Government of Kenya and the development community to advance PPPs. The Director General of the PPP Directorate, Eng. Kefa Seda, briefed participants on ongoing reforms aimed at strengthening the PPP ecosystem. These include reviewing PPP regulations to operationalize the Public Private Partnership Act 2021 and updating PPP guidelines to ensure greater alignment with stakeholder needs and evolving market realities. Eng. Seda noted that the engagement seeks to build stronger synergies among development partners while expanding participation across counties and economic sectors in line with Government priorities. “The Government is currently prioritizing structured PPP collaborations in key sectors including energy, water, transport, roads, and agriculture,” he explained. The meeting provided a platform to not only align Kenya’s priority PPP opportunities with partner support instruments but also explored blended finance models that reduce investment risks and attract private capital. Additionally, discussions included modalities for strengthening coordination among development partners to avoid duplication while maximizing development impact. Key participants in the meeting included representatives from the Turkish Embassy, GiZ Kenya, Japanese Embassy, European Union, United States Embassy, Canadian High Commission, Korean Embassy, German Embassy, Embassy of Belgium, Netherlands Embassy, Seriti Green (SA), Nedbank Ltd, AKSA Power, Nippon Koei, ABSA Bank Kenya, Zutari, Sanlam Allianz and Investec Bank, among others. @EngKefaSeda @SDPI_AM @KeTreasury @WorldBankGroup @EUinKenya @USEmbassyKenya #PPPKenya #InfrastructureDevelopment #PublicPrivatePartnerships #Investment #DevelopmentCooperation #DevelopmentPartners

Day 2: Monitoring and Inspection of the PPP Annuity Roads in Central Kenya by the PPP Committee. The team traversed Laikipia, Tharaka Nithi, Embu and Kirinyaga Counties. @EngKefaSeda @KURAroads @SDPI_AM @Roads_KE @TransportKE @LaikipiaCountyG @embucountygovt @TNCG_Official

The PPP Committee has officially embarked on the 2nd day of inspection of Lot 15 & 18 of the Annuity Roads in Central Kenya, beginning this morning in Laikipia County with a tour of the Upper Muthaiga Road. The PPP Committee delegation is led by the PS, State Department for Economic Planning, Dr. Boniface Makokha, and includes Mr. Stephen Mallowah and Mr. Julius Taki and the PPP Director General, Eng. Kefa Seda.@EngKefaSeda @JohnMbadiN @SDPI_AM @KURAroads @connect_infra @KeTreasury @MurangaGovt_021 @TNCG_Official @LaikipiaCountyG @embucountygovt

Ongoing inspection of Annuity PPP roads in Central Kenya... @EngKefaSeda @KURAroads @connect_infra @turnertownsend @SDPI_AM @KeTreasury @Roads_KE @TransportKE @MurangaGovt_021 @LaikipiaCountyG @embucountygovt @TNCG_Official

Inspection of Annuity PPP roads currently underway in Muranga, Nyeri, Laikipia, Tharaka-Nithi, Embu and Kirinyaga Counties in Central Kenya. @EngKefaSeda @KURAroads @connect_infra @turnertownsend @SDPI_AM @KeTreasury @Roads_KE @TransportKE @MurangaGovt_021 @LaikipiaCountyG

Digital infrastructure transformation remains central to our PPP agenda. In that regard, discussions with the Principal Secretary, State Department for ICT, focused on advancing a portfolio of priority projects structured for delivery through the Public Private Partnership framework, with an accelerated trajectory toward financial close within the next two quarters. The review covered PPP initiatives across national fibre backbone expansion, carrier-neutral data centers, cloud and digital government platforms, and shared connectivity infrastructure, aligning commercial structuring and regulatory readiness to enable swift market entry. Financing strategy featured prominently, with the National Infrastructure Fund examined as a co-investment platform to anchor early capital commitments and crowd in private sector participation at scale. Market sounding, investor engagement, and phased transaction packaging are underway to ensure competitive bidding and sustainable project economics. This structured approach will underpin rollout of resilient digital infrastructure that expands access, strengthens data capacity, and powers Kenya’s technology-driven growth trajectory.

Earlier today, I held strategic consultations with the Principal Secretary, State Department for Transport, to accelerate priority transport projects structured under the Public Private Partnership framework, with a clearly defined fast-track horizon toward financial close within the coming two quarters. The engagement reviewed key mass transit corridors, ports and logistics interface developments, and aviation capacity expansion initiatives to be included in the active PPP pipeline, aligning concession structuring, procurement sequencing, and regulatory coordination to compress transition timelines from development to market. The National Infrastructure Fund remains central to strengthening capital architecture and reinforcing investor confidence across the transport portfolio. With disciplined transaction oversight and clear execution benchmarks, these PPP transport projects are positioned to move decisively from structuring to implementation, advancing national connectivity, trade competitiveness, and long-term infrastructure resilience.

Directorate Drives Strategic Effort to Unlock Private Capital for Priority Road Projects In line with the Presidential directive to expand the country’s road network, the Public Private Partnerships (PPP) Directorate today joined roads sector agencies in a strategic scoping session to review projects identified for potential delivery under the PPP model. The meeting, convened by the Principal Secretary (PS) for Roads, Eng. Joseph Mbugua, brought together senior leadership from across the roads sector. Under the guidance of the PS, the PPP Director General, Eng. Kefa Seda, led the Directorate team in discussions with the Director General of the Kenya National Highways Authority (KeNHA), Eng. Luka Kimeli; the Director General of the Kenya Rural Roads Authority (KeRRA), Eng. Jackson Magondu; and representatives from the Kenya Urban Roads Authority (KURA) in exploring potential projects. Deliberations centred on screening projects for commercial viability, strengthening their readiness for private sector participation, and enhancing coordination among government agencies to accelerate implementation. Emphasis was placed on identifying initiatives capable of attracting credible private investment while delivering durable, high-quality road infrastructure. The engagement forms part of the Directorate’s broader strategy to advance the Government’s Bottom-Up Economic Transformation Agenda (BETA). By structuring bankable and sustainable PPP transactions, the Directorate seeks to leverage private capital, innovation, and technical expertise to expand and modernize Kenya’s road network. Eng. Seda reaffirmed the Directorate’s commitment to working closely with Ministries, Departments, and Agencies to build a strong pipeline of transparent, investor-ready projects aligned with national infrastructure priorities, including highway upgrades and strengthened trade corridors that enhance Kenya’s position as a regional economic hub. The session signals continued progress in translating policy directives into tangible infrastructure outcomes, with PPPs serving as a key instrument for sustainable development in the transport sector. @EngKefaSeda @SDPI_AM @KeTreasury @KeNHAKenya @KURAroads @KeRRA_Ke @Roads_KE @TransportKE #PPP #RoadInfrastructure #InfrastructureDevelopment #PublicPrivatePartnerships #PrivateCapital #InvestmentOpportunities #KenyaRoads #BETA #EconomicGrowth #TransportSector #InfrastructureFinance #SustainableDevelopment

PPP Directorate Joins High-Level Projects Scoping Meeting for the Energy Sector The Director General of the Public Private Partnerships (PPP) Directorate, Eng. Kefa Seda, today led a technical team from the Directorate in a high-level projects scoping meeting convened by the State Department for Energy. The session brought together senior officials from key institutions in Kenya's energy sector to review and prioritize projects aligned with the Presidential Economic Sector Agenda on generation of 10,000 megawatts of power. Chaired by the Principal Secretary for Energy, Mr. Alex Wachira, the meeting included representatives from the Kenya Electricity Transmission Company Limited (KETRACO), Energy and Petroleum Regulatory Authority (EPRA), Kenya Power and Lighting Company (KPLC), Kenya Electricity Generating Company (KenGen), and the Nuclear Power and Energy Agency. The team explored high-impact investment opportunities in power generation, transmission, and distribution, while also focusing on strengthening project preparation to improve bankability and attract private capital. They also examined how projects could be structured more effectively, including through Public Private Partnership (PPP) models, to ensure optimal risk allocation, faster implementation, and stronger investor confidence. The engagement aligns with broader national goals under the Bottom-Up Economic Transformation Agenda (BETA), which emphasizes reliable and affordable energy as a foundation for economic growth, job creation, industrialization, and improved living standards. Eng. Seda reiterated the Directorate’s commitment to collaborating closely with contracting authorities to advance priority initiatives through structured PPP frameworks, signaling a strong drive to accelerate Kenya’s energy sector development. @EngKefaSeda @SDPI_AM @KeTreasury @AlexKWachira @KibiasKipkemoi @EpraDg @KenGenKenya @KenyaPower @nuclearkenya #EnergyKenya #PowerGeneration #PPP #InvestmentOpportunities #BETA #KenyaPower #SustainableEnergy #EconomicGrowth #CleanEnergy #InfrastructureDevelopment

PPP Directorate Engages Irrigation State Department to Fast-Track Presidential Directive on Irrigation Projects A team from the Public Private Partnerships (PPP) Directorate held a high-level consultative meeting with the Principal Secretary of the State Department for Irrigation, CPA Ephantus Kimotho, to advance several flagship large-scale dam projects under the PPP framework. The delegation was led by the PPP Director General, Eng. Kefa Seda. The meeting, which focused on multipurpose dams prioritized under Presidential Directive and the Bottom-Up Economic Transformation Agenda (BETA), aimed at enhancing food security, promoting agro-industrialization, generating hydropower, and driving development in drought-prone arid and semi-arid lands (ASALs). Key projects reviewed are the High Grand Falls Dam (Kibuka Falls) across Kitui, Tharaka Nithi, Tana River, and Garissa counties, as well as the Galana Dam. Others feature Barsalanga in Isiolo and Samburu, Radat in Baringo, and Lowaat in Turkana, aimed at addressing water scarcity in the north. These initiatives form a core part of Kenya’s Water-Food-Energy Nexus, supporting extensive irrigation toward a national goal of two million acres while generating clean hydropower to strengthen agriculture and energy supply. Participants agreed to structure several projects under the PPP framework to attract private investment, enhance bankability through balanced risk allocation, and ensure transparent, competitive procurement. Immediate next steps include detailed project structuring and procuring Transaction Advisors to expedite feasibility studies, financial modeling, and implementation. @EngKefaSeda @EphantusKim @irrigationke @Irrigation_Auth @SDPI_AM @KeTreasury @MOWSI_KE #KenyaPPPs #IrrigationProjects #FoodSecurity #AgroIndustrialization #Hydropower #ASALDevelopment #WaterFoodEnergyNexus #InfrastructureKenya #InvestmentOpportunities #PresidentialDirective #BETAAgenda

Sabaki Water PPP Project: Advancing Water Security and Dignity for Kenya's Coastal Communities For many families in Kenya’s coastal region, access to clean, affordable and reliable water remains a daily struggle. In parts of Kilifi and Mombasa Counties, households walk long distances to water points, endure erratic supply, or buy costly water from vendors without guaranteed safety. The impact extends beyond households. Schools, health facilities, tourist sites, and small businesses all depend on reliable water supply. During dry seasons, the situation worsens, forcing communities to turn to unsafe sources and increasing the risk of water-borne diseases. Women and children bear the greatest burden, spending hours fetching water instead of attending school or pursuing income-generating activities. Rapid population growth and climate change have intensified pressure on ageing infrastructure. Water utilities in the region face rising demand but limited financial and technical capacity to expand systems at the required scale. Recent reforms under the amended Water Act, 2024 have opened the door for Public Private Partnerships (PPPs) in water service delivery, while maintaining strong public oversight. This framework allows government to retain stewardship of water resources while leveraging private sector expertise and financing. It is within this context that the Sabaki Water PPP Project was conceived. The project aims to deliver reliable, affordable and sustainable water and sanitation services to more than 650,000 people across Kilifi and Mombasa Counties, in line with Kenya’s Vision 2030 and climate resilience goals. Under the proposed PPP model, up to 80,000 cubic metres of water per day will be abstracted from the Baricho aquifer in Kilifi and transmitted to serve Kilifi, Malindi and Mombasa. The project also incorporates wastewater treatment and prioritizes last-mile connectivity to ensure water reaches homes, schools and businesses. The Government of Kenya, through the Ministry of Water, County Governments and Water Service Providers, will retain oversight and protect the public interest. The private partner will finance, design, build and operate the system under clear performance standards, ensuring sustained service quality. Now in the pre-negotiation phase, the project is putting in place the legal, financial and technical foundations necessary for long-term success. Though less visible than construction, this stage is critical to ensuring that when water begins to flow, it is reliable, sustainable and affordable. @EngKefaSeda @SDPI_AM @KeTreasury @MOWSI_KE @KilifiCountyGov @MombasaCountyKe @Mowassco @KIMAWASCO #WaterSecurity #WaterAccess #CleanWaterForAll #WaterInfrastructure #SustainableWater

Collectively, these projects underscore the growing maturity of Kenya’s PPP framework, contributing to cumulative private sector investment of approximately KES 145 billion since 2013. Beyond the investment figures, they demonstrate a transition from policy intent to bankable, implementable projects.

Once operational, Galana Kulalu is projected to produce approximately 720,000 bags of maize and 160,000 bags of soya beans annually. The project is expected to reduce Kenya’s dependence on food imports, mitigate price volatility, create employment opportunities, and stimulate agro-processing activities in Kilifi and Tana River Counties.

PPP Progress: Kenya Advances Private Sector Financing for Galana Kulalu and OrPower 22 Kenya’s Public Private Partnerships (PPP) programme continues to gain momentum, advancing private sector participation in two landmark projects: the OrPower 22 Geothermal Power Plant and the Galana Kulalu Food Security Project. While Galana Kulalu has reached financial close, the OrPower 22 project is currently progressing through the fulfilment of conditions precedent, a critical step toward securing full project financing and commencement of large-scale construction. @EngKefaSeda @SDPI_AM #PPP #Kenya #Infrastructure #Energy #Geothermal #FoodSecurity #PrivateSector #SustainableDevelopment