The National Treasury is banking on Public-Private Partnerships (PPPs) to deliver major infrastructure and development projects in the 2025/26 financial year, targeting Ksh293.6 billion in financing. This strategy is expected to ease the government’s reliance on domestic borrowing, which has been projected at Ksh635.5 billion for the year.
Kenya currently has 37 PPP projects, eight under implementation and 29 in the pipeline at different stages of development. According to Treasury, the projects cut across critical sectors including space technology, housing, education, food security, transport, and energy.
One of the flagship initiatives is the Malindi commercial spaceport, spearheaded by the Kenya Space Agency (KSA). Approved in April 2025, the project is set to position Kenya as a hub for satellite launches and space-related commercial activities, drawing international investors in earth observation, telecommunications, and climate monitoring. Procurement of a transaction advisor is expected in the first quarter of FY 2025/26.
In the housing sector, the Kenya Defence Forces Residential Accommodation project, valued at Ksh4.5 billion, is delivering 3,069 units across Nairobi, Laikipia, Kilifi, and Nakuru. Meanwhile, the University of Nairobi Purpose-Built Student Accommodation Project will create 4,000 hostel beds under a 30-year DBFOT model, with procurement due in the coming year.
The Galana-Kulalu Food Security Project, valued at Ksh12.5 billion, remains a key priority to bring 20,000 acres under maize and soybean cultivation. It reached commercial close in December 2024, with financial close still pending.
Transport projects remain central to PPP plans, despite the Nairobi-Mombasa Expressway being cancelled in July 2025 after failing to meet PPP Act criteria. Focus has shifted to the Nairobi-Nakuru-Mau Summit Highway, where proposals from CRBC and Shandong Hi-Speed are advancing to the project development phase. Additionally, the smart driving licences project worth Ksh45 billion is at negotiation stage.
In the energy sector, the 35MW Quantum Menengai Geothermal Power Plant, a Ksh15.2 billion investment by Toyota Tsusho, is already under construction. However, the proposed High Grand Falls Dam, valued at Ksh337 billion, was terminated in July 2025 but may be revived through open tender.
These PPP projects highlight the government’s commitment to harnessing private sector investment to drive economic growth while managing debt sustainability.
