Kenya’s Africa Infrastructure Country Diagnostic (AICD) report estimates that, to address the country’s infrastructure deficit will require sustained expenditures of approximately $4 billion per year (20% of GDP) over the next decade. To meet this objective, the Government of Kenya (GOK) has been looking at alternatives aimed at raising additional finance, adopting lower-cost technologies, while prioritizing infrastructure investments.

In this context, the Government of Kenya (GOK) has made infrastructure development through Public Private Partnerships (PPPs) a priority as a mechanism that can help it address the major infrastructure gaps in the country.

It has over the past been committed to improving and strengthening the environment for private sector participation in the country.  In this effort to improve the PPP investment climate, the following deliberate initiatives have been undertaken by the government:

  • The adoptation of a PPP Policy to articulate the government's commitment to PPPs and to provide a basis for the enactment of a PPP Law;
  • The gazettment of the  PPP Act 2013 on 8th February 2013; and
  • Most recently, the development of PPP Regulations for both the National and County governments.

The GOK is confident that through the PPP modality, the private sector can offer a dynamic and efficient way to deliver and manage public infrastructure. These efforts are geered towards achieving Vision 2030, Kenya’s long-term development strategy, so that future generations can gain from the benefits of modern services, improved living standards and reduced poverty.

The Public Private Partnership Unit (PPPU) was therefore established, as a specialized unit within the National Treasury, to promote and oversee the implementation of the GOK PPP Program.

The PPP Unit, as the resource centre for best practice and guardian of the integrity of the PPP process, plays a large role in identifying problems, making recommendations to the PPP Committee regarding potential solutions, and ensuring that projects meet such quality criteria as affordability, value for money, and appropriate transfer of risk.