Kenya’s Africa Infrastructure Country Diagnostic (AICD) report estimates that, to address the country’s infrastructure deficit will require sustained expenditure of approximately $4 billion per (20% of GDP) over the next decade.
To meet this objective, the Government of Kenya (GOK) has been looking at alternatives targeting 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.
GOK has hence 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 adaptation 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 enactment of the PPP Act 2013 on 8th February 2013
- The development of the PPP Regulations in 2014.
- The development of various templates and guidance notes on PPP matters
The GOK is confident that through the PPP modality, the private sector will offer a dynamic and efficient way to deliver and manage public infrastructure. These efforts are geared 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 (PPP Unit) 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 center for best practice and guardian of the integrity of the PPP process, plays a key 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.