The National Treasury has unveiled plans to mobilize about Ksh293.6 billion through Public-Private Partnerships (PPPs) during the 2025/26 financial year. This ambitious target forms a key part of the government’s strategy to reduce reliance on domestic borrowing, which is forecasted at Ksh635.5 billion for the same period.
Speaking at a PPP Symposium held in Nairobi on Monday, Treasury Cabinet Secretary John Mbadi said the country is prepared to embrace PPPs as a viable investment option.
Currently, Kenya has five operational PPP projects valued at Ksh123.1 billion. These include completed infrastructure like the Nairobi Expressway, the 35MW Sosian geothermal project in Menengai, and several road developments overseen by Kenya Rural Roads Authority (KeRRA) and Kenya Urban Roads Authority (KURA).
The PPP pipeline features 34 national government projects and three county government initiatives at various stages of development. Ten projects are in the feasibility or development phase, while another ten await transaction advisors.
Among financially closed projects under construction are the 35 MW Quantum geothermal power plant valued at Ksh15.21 billion, and the Kenya Defence Forces Residential Accommodation project, worth about Ksh4.5 billion.
Projects at commercial close include the Galana-Kulalu Food Security Project, a 35MW geothermal plant, and critical power transmission infrastructure backed by Africa50 and KETRACO, highlighting a multi-sectoral approach to infrastructure growth.
Kepha Seda, Director General of the PPP Directorate at the Treasury, said that meeting the 2025/26 target would significantly ease the pressure on local borrowing and fast-track development in key sectors like energy, transport, irrigation, and housing.
CS Mbadi emphasized the importance of PPPs in addressing stalled projects, especially road construction, due to funding gaps.
“If we succeed with all these projects, it is going to reduce pressure on our fiscal space and help us manage our debts sustainably. This will also help put our borrowings in check and control,” Mbadi said.
He urged Kenyans to support PPP initiatives as a way to boost the government’s capacity to deliver better services.
 during the 2025/26 financial year. This ambitious target forms a key part of the government’s strategy to reduce reliance on domestic borrowing, which is forecasted at Ksh635.5 billion for the same period.){kind=link}