Power, water, and irrigation top list of state’s new private sector partnerships

Energy transmission and large-scale irrigation schemes are among the top priorities the government is pushing through private sector partnerships, a new report by the National Treasury’s Public-Private Partnership (PPP) Directorate shows.

The report outlines that the Kenya Kwanza administration is at advanced stages of preparing several big-ticket projects aimed at boosting infrastructure and food security.

Among the most prominent is a series of power transmission lines and substations backed by Africa 50 and set to be implemented by the Kenya Electricity Transmission Company (Ketraco).

The planned power works include the 177-kilometre Loosuk-Lessos transmission line and the 84-kilometre Kisumu-Musaga line. The project will also include major infrastructure such as a new 400kV switch station at Loosuk, new substations at Kakamega, and extensions at Lessos, Musaga, and Kibos.

According to the Treasury report, talks with the private sector partner are ongoing, and the final terms will be presented to the PPP committee for review and approval.

Irrigation development is also gaining traction, with the National Irrigation Authority said to be nearing financial closure on a proposed revamp of the Galana-Kulalu irrigation scheme.

Feasibility assessment

The Galana Dam project, proposed by China Roads and Bridges Company, is still under feasibility assessment. Once launched, the project is expected to bring 20,000 acres under production.

“The private party and the contracting agency are working on fulfilling conditions precedent to financial close,” the report notes.

The firm tasked with the Galana scheme, Selu Limited, aims to produce 720,000 bags of maize and 160,000 bags of soybeans annually over the next 30 years.

In Kilifi County, a water project dubbed the Sabaki water carrier is progressing toward contract negotiations. The PPP Directorate said that in February 2025, the project was cleared to enter contract talks with Utility Partners One LLP.

The Sabaki project involves abstracting 80,000 litres of water daily from the Baricho aquifer on the Sabaki River, setting up a treatment and storage plant, and constructing sewer treatment units and a supporting network.

Meanwhile, a project to modernise cargo inspection systems across ports, airports, and borders is in its feasibility phase. The proposed work, led by Parkison Clarke FZE, aims to install Advanced Cargo Scanning Systems integrated with tracking and risk detection tools.

Other ongoing feasibility studies include the Nairobi-Mombasa Expressway, where US-based Everstrong Capital has been picked to lead construction of the planned 419-kilometre four-lane road.

Separately, the National Transport and Safety Authority is seeking a direct contractor for a project to supply smart driving licences.

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“The project’s risk assessment report was approved in June last year, subject to the contractor fulfilling some specific conditions,” the report says.

The Treasury has also floated bids for the construction of Stoni Athi affordable housing units and new student hostels at the University of Nairobi.