Treasury Seeks to Scrap 30-Year Limit on PPP Contracts

Treasury Cabinet Secretary John Mbadi

The National Treasury has proposed significant changes to Kenya's Public-Private Partnership (PPP) law through a fresh amendment Bill. The reforms seek to create a more flexible investment environment while accelerating the implementation of infrastructure projects.

Among the proposed amendments is the removal of the 30-year limit that currently guides the duration of PPP agreements. Treasury believes the existing provision limits flexibility for projects that require longer investment periods.

Contract duration to depend on project type

If Parliament approves the Bill, future PPP contracts will no longer follow a fixed 30-year period. Instead, the duration will depend on the specific type of agreement provided under the law.

Treasury says different projects have different financial structures and investment needs. The proposed change would allow concession periods that match the scale and nature of each project.

Officials argue that longer contract periods could encourage more investors to finance large infrastructure developments. Investors would have adequate time to recover project costs before handing assets back to the government.

PPP Directorate role set for review

The draft law also seeks to reduce the direct oversight role of the PPP Directorate during project procurement. Contracting authorities would assume greater responsibility when evaluating bids from private investors.

Under the proposal, the Directorate would stop reviewing tender evaluation reports prepared by government agencies. Its role would instead focus on offering technical guidance during project planning and feasibility studies.

Treasury says the changes will eliminate unnecessary delays in the approval process. Government institutions will therefore handle procurement decisions with greater independence.

More institutions to undertake PPP projects

The amendment Bill also proposes expanding the institutions allowed to enter PPP agreements. Government-owned enterprises would gain legal authority to initiate and manage partnership projects.

The proposal aims to increase the number of agencies capable of attracting private investment. Treasury believes this will widen opportunities for infrastructure development across different sectors.

County governments would also follow a revised approval process under the proposed law. County executive committees would approve PPP projects instead of county assemblies.

Public invited to submit views

Treasury has scheduled nationwide public participation forums before presenting the Bill to Parliament. The exercise will begin on July 13, 2026, to collect public views on the proposed amendments.

Members of the public can also submit written memoranda on the draft Bill and regulations. Treasury says the consultations will help refine the proposals before lawmakers begin debating the legislation.

The reforms come as the government continues relying on PPP arrangements to finance major infrastructure projects. Recent initiatives include the planned upgrade of Jomo Kenyatta International Airport through private investment.