The National Treasury has signaled a strategic retreat from external commercial debt, turning its sights on the domestic capital markets to fund Kenya’s multi-billion shilling infrastructure ambitions.
- •In a move aimed at unlocking "idle" local liquidity, the State Department for Public Investments and Assets Management has invited licensed capital markets advisors to help structure Public-Private Partnership (PPP) deals.
- •According to a tender notice, the government seeks to create a pool of elite experts to design financial instruments, such as infrastructure bonds and asset-backed securities, specifically tailored for Kenyan pension funds and insurance pools.
- •The local resource mobilization drive comes as President William Ruto defended the government’s aggressive PPP policy, arguing it is the only way to deliver development without breaking the backs of taxpayers.
Speaking earlier during the groundbreaking of the 35MW Orpower 22 Geothermal Plant in Menengai, Nakuru County, the President characterized PPPs as a "win-win" for the country.
“It is important to appreciate that the partnership between the public and private sector gives us an outcome to deliver services using the efficiency of the private sector without burdening Kenyans with more taxes or loans,” he said.
He cited the Standard Gauge Railway (SGR) as a prime example of how strategic partnerships can deliver transformative projects that would otherwise be out of reach for the exchequer.
As of April 2026, Kenya’s infrastructure playbook boasts 51 active projects, forming the bedrock of East Africa’s largest economy. A quarterly progress report from the PPP Directorate confirms that 10 major developments have successfully transitioned into the implementation phase.
Among the already in the operations and maintenance stage are the Nairobi Expressway, the Ksh 11.7 billion Sosian Menengai Geothermal plant, and the Galana-Kulalu (Nafaka) food security project.
On the construction front, work is intensifying on the Ksh 160 billion Nairobi-Nakuru-Mau Summit Highway, which is expected to end the perennial snarl-ups on the Western corridor. Other projects include the Quantum Geothermal plant and the Kenya Defence Forces (KDF) residential housing project.
However, the road to implementation has not been without its bumps. The government recently asserted more control over strategic assets, with the Kenya Airports Authority (KAA) terminating the controversial KSh 238 billion Adani Group proposal for Jomo Kenyatta International Airport (JKIA).
Instead, the state is now pursuing a "component-based" PPP model for a new terminal and a second runway. The Directorate is targeting a financial close for these individual upgrades by December 2026.
Treasury has set a strict timeline for the prequalification of advisors. Interested firms have until April 29, 2026, to access the Terms of Reference, with a final submission deadline set for May 20, 2026, at 11:00 AM.
