Kenya: privately initiated PPP proposals
- Law
- Public Private Partnerships Act, No. 14 of 2021, assented 7 December 2021 2
- Commencement
- 23 December 2021 1
- Review fee
- 0.5 per cent of estimated project cost or US$50,000, whichever is lower 2
- Directorate evaluation
- Within 90 days of submission 2
- Committee decision
- Within 14 working days of the Directorate report 2
- Project development phase
- Six months from Committee approval, extendable 1
- Committee chair
- Principal Secretary responsible for finance 1
The law and the institutions
The Public Private Partnerships Act, 2021 was assented to on 7 December 2021 as Act No. 14 of 2021 2. It commenced on 23 December 2021 1.
The Public Private Partnership Committee is set up under section 6. The Principal Secretary responsible for finance chairs it. Members include the Principal Secretaries for planning and infrastructure, the Solicitor-General, two persons nominated by the Council of County Governors and three non-public officers appointed by the Cabinet Secretary. The Director-General is secretary 1.
The Directorate of Public Private Partnerships is set up under section 15. A Director-General appointed by the Public Service Commission for a four-year term, renewable once, heads it. Section 19(1) names the Directorate as the lead institution for PPP projects 1.
What a proposal must contain
Under section 40(2) a contracting authority may consider a proposal only if it fits national infrastructure priorities and meets a shown need, offers value for money, gives enough information to assess affordability and contingent liabilities, reflects a fair market price and transfers risk from the public sector 1.
- A project description with reference designs and a needs analysis 1
- Environmental and social features 1
- A technical description with a construction schedule 1
- A financial viability assessment with an open-format financial model 1
- A preliminary operating plan and a risk allocation 1
- Disclosure of any government support sought 1
- A justification for not using open competition 1
Steps and deadlines
At the final stage the Committee may approve the project for procurement, decline it as unsuitable for a PPP, or abandon it. After abandonment the contracting authority may restructure and resubmit the project. Feasibility studies and project documents are published after the Committee's determination 1.
| Step | Who acts | Time limit | Section |
|---|---|---|---|
| Due diligence on the private party 1 | Directorate with the contracting authority 1 | Not stated 1 | 41 1 |
| Evaluation of the proposal 2 | Directorate 2 | 90 days from submission 2 | 42(5) 2 |
| Report to the Committee 2 | Directorate 2 | 5 working days after evaluation 2 | 42(6) 2 |
| First decision 2 | Committee 2 | 14 working days after the report 2 | 42(7) 2 |
| Project development studies 1 | Private party 1 | Six months, extendable on application 1 | 43 1 |
| Recommendation on studies 1 | Directorate 1 | 20 working days 1 | 43(9) 1 |
| Final determination 1 | Committee 1 | 14 days 1 | 43(13) 1 |
Procurement and costs
Section 44 allows direct negotiation where a proposal would not attract market interest, has unique elements or is justified in the public interest. Negotiations must end within six months. Restricted tendering applies where several proposals proceed, and open tender applies where there is market interest 1.
The contracting authority may reimburse the private party's costs only if the project is awarded to another bidder, reaches financial close, the development costs do not exceed 0.5 per cent of the estimated project cost and the winning bidder bears those costs 2.
Published decisions
At its 54th ordinary meeting on 2 July 2025 the PPP Committee approved two proposals for the Nairobi-Nakuru-Mau Summit (A8) and Rironi-Maai Mahiu-Naivasha (A8 South) roads to proceed to project development. The proponents were a China Road and Bridge Corporation Kenya and National Social Security Fund consortium, and Shandong Hi Speed Road and Bridge International Engineering Co. Ltd. A third proposal from Multiplex Partners Co. Limited was still under evaluation. The KeNHA notice states it does not constitute an award 3.
At the same meeting the Committee decided that Everstrong Capital Kenya Limited's proposal for a 459 km Nairobi-Mombasa expressway from Mlolongo to Bonje did not meet the relevant criteria and should be abandoned under section 43(11)(c). It asked KeNHA to consider restructuring the project by expanding the existing A8 highway 4. Both notices cite a circular dated 24 April 2025 on public disclosure of privately initiated proposals 3,4.
Court ruling of September 2026
As reported by Dzuya Walter of Citizen Digital on 17 September 2026, the High Court declared sections 59, 60 and 72 of the PPP Act unconstitutional to the extent that they do not require parliamentary approval where a PPP project creates government expenditure, guarantees, public debt or other public liabilities. The declaration was suspended for six months to let Parliament amend the law 5.
The same report says the court rejected the challenge to privately initiated proposals, but warned that such a proposal cannot be used to unfairly favour a particular company. The petition concerned the JKIA and KETRACO projects, which had been cancelled. The report did not carry a government response 5.
Common questions
How much does it cost to submit a privately initiated proposal in Kenya?
A non-refundable review fee of 0.5 per cent of the estimated project cost or US$50,000, whichever is lower, paid into the Fund 2.
Who approves a privately initiated proposal in Kenya?
The PPP Committee, on a report from the PPP Directorate 2.
Can the proponent recover its development costs?
Only on conditions in section 44(5), including that another bidder wins, financial close is reached and costs do not exceed 0.5 per cent of the estimated project cost 2.
Are decisions on proposals made public?
Section 43 requires publication of feasibility studies and project documents after the Committee decides 1. KeNHA has published Committee decisions on road proposals 3.
Rules and fees change. Check the official site linked above before you apply or pay. Spotted an error? Email [email protected] with the official link.
Sources
- Kenya Law: Public Private Partnerships Act, 2021, Cap. 430 (commenced 23 December 2021)
- National Treasury, Kenya: The Public Private Partnerships Act, No. 14 of 2021 (assented 7 December 2021)
- Kenya National Highways Authority: Disclosure notice, Nairobi-Nakuru-Mau Summit and Rironi-Maai Mahiu-Naivasha PPP road projects (PPP Committee decision of 2 July 2025)
- Kenya National Highways Authority: Disclosure notice, Nairobi-Mombasa Expressway PPP project (PPP Committee decision of 2 July 2025)
- Citizen Digital, Dzuya Walter: High court strikes down parts of PPP law, orders parliament oversight (17 September 2026)
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