- Projects cover roads, water, electricity, and ICT sectors.
- rIndian firm Adani among those being considered for mega power projects.
Image: FILE
President William Ruto’s administration is looking to private sector players to implement flagship projects that will cement his legacy.
Kenya Kwanza has lamented that budget constraints are slowing down its legacy plan, with no significant milestones realised two years into its hold of power.
The projects to be taken up by private players are in the sectors of transport and infrastructure, health solutions, green energy, water, housing, industrial parks, and ICT.
According to data from the Public Private Partnership Directorate of the National Treasury, some of the projects are at contracting stage while others are under feasibility study.
Those under study include a 300-bed inpatient facility at Kenyatta National Hospital and the Nairobi-Mombasa Expressway.
It has emerged that the government is also exploring constructing accommodation facilities at the University of Nairobi.
Other projects under feasibility assessment are the national tolling operator, an integrated border management system, several water projects and Nairobi Smart Street Lighting project.
At Moi Teaching and Referral Hospital college of health sciences, there is a plan to expand accommodation facilities while at Pwani Teaching and Referral Hospital, several projects are under feasibility study including building a research centre, tropical medicine centre and students hostels.
Some of the private sector-funded ventures are already operational, among them the Nairobi Expressway and various urban roads, as well as link roads.
The PPP data reveals that the government approved the proposed upgrade of Jomo Kenyatta International Airport in March.
India-based Adani Airports is among entities that have responded to the state’s call for private players to develop and expand the country’s main aviation hub.
The firm has proposed to build and operate the airport for 30 years.
“The project development and feasibility study report was approved in May 2024, for the project to progress to contract negotiations,” the Chris Kirigua-led PPP directorate stated.
“The negotiations with the private party are underway, and the proposed terms shall be tabled to the PPP committee for approval,” the report reads.
Ruto's team further seeks to engage a private contractor to build and rehabilitate roads to augment the existing netwrok from Wajir–Habaswein–Samatar (68km) and Rhamu-Mandera (75km).
“The project attained commercial close. However, it is under consideration for possible restructuring,” PPP said.
Also in the pipeline is the 35MW Menengai geothermal power plant, which is to be built by a private operator who will run it for 25 years.
Treasury said the project attained commercial close and is under restructuring with regard to shareholding in the special purpose vehicle for the venture.
Kenya Kwanza is also looking at private players to build power transmission lines and substations.
If approved, the private player is expected to build a 177km of 400 kV Loosuk –Lessos transmission line as well as 64km 220kV Kisumu-Musaga transmission line.
The private partner is also expected to build substations including a new 400kV switch station at Loosuk, new substations 220/33kV at Kakamega and substation extensions at Lessos, Musaga and Kibos.
“The project development/feasibility study report was completed, submitted and approved in May 2024, for the project to progress to contract negotiations. The negotiations with the private party are underway, and the proposed terms shall be tabled to the PPP committee for approval,” the directorate said.
Details further show that Kenya is in talks with Adani Energy to build power transmission lines and substations.
Adani is expected to build 206km 400kV Gilgil-Thika-Malaa-Konza line, 220kV Rongai-Keringet-Chemosit covering 96km, 132kV Menengai-Olkalou-Rumuruti of 70km and a 400/220kV substation at Lessos and Rongai as well as the 132/33kV Thurdibuoro substation.
The PPP data shows the project proposal was approved in February 2023 to progress to the project development/feasibility study phase.
“The project development/feasibility study report was completed, submitted and approved in May 2024, for the project to progress to contract negotiations.”
Treasury revealed that negotiations with the private party are underway, and the proposed terms will be tabled to the committee for approval.
The planned Kenyatta University student hostels – to accommodate 10,000 - will be built by private players.
The PPP directorate revealed that the project attained commercial close.
“The fulfilment of conditions precedent to financial close is outstanding, pending resolution between the private party and the contracting authority.”
Several projects are at procurement stage among them the equipment, operation and maintenance of Lamu port 1-3 berths and the Lamu Special Economic Zone.
The three berths comprise a 400m bulk berth (non-containerized cargo), a 400m container berth, and a 400m general cargo berth, and a Special Economic Zone.
“The procurement of the private party was launched and thereafter put on hold in November 2023, pending the resolution of a court case,” the directorate said.
President Ruto is also looking to the private sector to supply smart driving licenses and associated services.
“The project entails the supply, delivery and installation of a second-generation smart card-based driving license.”
It is emerging that the project was approved to progress to contract negotiations in February 2024.
Also in the pipeline is the University of Nairobi Cancer Care Centre, Teaching and Research Hospital.
The PPP directorate said it would entail the development of a modern and technologically advanced hospital that will provide specialist healthcare services.
The project proposal for the facility expected to offer research and training opportunities was approved in February 2023.
It is reported that the private party and the contracting authority are working on the conditions.
A private party is also being sought for the Galana-Kulalu food security project that seeks to bring 20,000 acres of the expansive land under production.
It is projected to make available an estimated 720,000 bags of maize and 160,000 bags of soybeans per year over 30 years.
“The negotiations with the private party are underway, and the proposed terms shall be tabled to the PPP committee for approval.”
The Tana Delta Integrated Project is also to be executed by a private firm, the details show.
The government seeks to use the venture to enhance food security by bringing under production 31,000 hectares of land to produce 300,000 metric tonnes of rice per year over 30 years.
Details show that the project development and feasibility study report was completed, submitted, and approved in February 2024, for the project to progress to contract negotiations.
“The negotiations with the private party are underway, and the proposed terms shall be tabled to the PPP committee for approval.”
Stoni Athi affordable housing units have also been floated to private players who are expected to develop and sell 2,820 units.
The project proposal and feasibility study report were approved in May 2024, the report reveals.
“In addition, approval was granted for the project to progress to competitive tender for private party. The bidding documents are being finalised,” the PPP directorate said.
For the KNH private partnership project, the feasibility study was completed and the tender issued in 2019 but it was non-responsive.
“The project is being considered for restructuring and subsequent possible re-tender,” the PPP directorate said.