The State has stepped up the execution of the revived 700-megawatt (MW) Kibuka Falls Hydropower and Irrigation Dam project (formerly the High Grand Falls Dam project), opening preparations for a final assessment of the venture's feasibility.
The Treasury is already recruiting a transaction advisor (TA) to assess the project's viability within eight months and recommend the most suitable public-private partnership (PPP) models for its implementation.
“The TA will advise on the appropriate implementation phases based on technical and commercial assessment, including appropriate grid stability studies and grid capacity for additional wind power,” the Treasury said.
The dam, to be built along the Tana River, is set to generate 700MW of power at the start and more than 5,600 million cubic metres of water for the irrigation of about 500,000 acres.
“The overarching goal of the project is to develop a multi-purpose dam and hydropower facility that enhances water security, enhances flood control and drought resilience, provides stable dispatchable hydropower essential for grid reliability, generates clean energy, supports large-scale commercial irrigated agriculture, and promotes sustainable socio-economic development,” the Treasury said.
The Public Private Partnership Directorate of the Treasury terminated the deal for the construction of the dam in July 2025, because the development plan failed to meet several undisclosed conditions.
GBM Limited of the United Kingdom was to build the dam as part of the project that had been estimated to cost Sh337billion.
The directorate approved termination of the project on July 2, 2025, and allowed the National Irrigation Authority – the contracting authority for the project— to invite bidders afresh.
The initial botched plan for the construction of the dam was privately initiated by GBM Limited.
The company was to partner with Power China and RCP Irrigation, a Portuguese firm.
Power China built the Three Gorges Dam – the biggest hydro dam in China.
They planned to run the High Grand Falls for 30 years, during which they would recoup their investment and then hand over the dam to the government of Kenya.
The High Grand Falls project was conceived in the 1950s, and its construction was initially targeted to start in 1992.
The Treasury said that Kenyan investors and financial institutions would finance the Kibuka Falls Hydropower and Irrigation Dam project.
“In structuring the Hydropower and Irrigation Dam Projects, the Transaction Advisor is expected to explore means of mobilising local capital to contribute to the sources of capital where possible,” it said.
