Ministries, State departments and parastatals will get a bigger say in selecting firms for public-private partnership (PPP) projects if Parliament approves new proposals to delink the National Treasury's PPP Directorate from reviewing and approving tender evaluation reports.
The contracting authorities, which already undertake the bulk of the PPP tendering process, will have the right to pick winning bidders under proposed amendments to the Public Private Partnerships (PPP) Act.
The change is expected to give contracting authorities greater autonomy in selecting firms to undertake PPP projects, with the role of the National Treasury's PPP Directorate being limited largely to the project conception stage.
The approval of the PPP Directorate will also not be required when a contracting authority submits a project and financial risk assessment report to the directorate.
"Clause five of the Bill proposes to amend Section 19 of the principal Act to provide that the Public Private Partnerships Directorate shall not be responsible for reviewing tender evaluation reports prepared by contracting authorities," reads part of the Public Private Partnerships (Amendment) Bill, 2026 tabled by the National Treasury.
"Clause 14 of the Bill proposes to amend Section 58 of the principal Act to clarify that the approval of the directorate is not required when the contracting authority submits a project and financial risk assessment report to the directorate."
Further amendments to the PPP Act would allow more room for direct procurement by contracting authorities by removing the requirement that works or services be available from a limited number of private parties before direct procurement is permitted.
When conducting feasibility studies on PPP projects, the amendments also require contracting authorities to consult the directorate rather than take direction from it.
The PPP Act tasks contracting authorities with identifying, screening and prioritising projects based on guidance issued by the PPP Directorate and undertaking the tendering process.
The authorities are also required to provide the directorate with technical expertise as required to evaluate and appraise projects.
Contracting authorities will still be obligated to submit periodic reports on the implementation of project agreements and maintain records of all documentation and agreements entered into in relation to PPP projects.
The Treasury's PPP Directorate, meanwhile, serves as the lead institution for the implementation of PPP projects.
The directorate originates, guides and coordinates the selection, ranking and prioritisation of PPP projects within the public budget framework.
It oversees the project appraisal and development activities of contracting authorities, including providing technical expertise for the implementation of PPP projects.
The government has turned to PPPs to unlock resources for key infrastructure projects in sectors such as roads, energy and water amid shrinking budgetary allocations caused by rising recurrent expenditure, including debt interest payments and public sector wages.
As of April 2026, Kenya had 51 PPP projects, 10 of them under implementation and 41 in the pipeline or at various stages of the PPP project cycle, according to data from the Treasury Directorate.
Six projects have been completed and are operational, including the Nairobi Expressway, the 35-megawatt (MW) OrPower 22 Menengai Geothermal Power Plant Project, and the Galana-Kulalu Food Security Project.
Four projects are under construction, including the Kenya Defence Forces (KDF) Residential Accommodation Project and the Nairobi-Nakuru-Mau Summit Highway.
