Treasury Bets on PPPs as Billions Flow into Space, Housing, and Energy Projects
Kenya’s Public-Private Partnerships (PPPs) in infrastructure development is a topic of debate, but Treasury data shows just how big the model has become. We have 5 operational PPPs worth Ksh123.1 billion, and 29 in the pipeline.
That’s 37 projects in total, 8 of which are under implementation and the rest at various stages of approval and structuring.
Going forward, the National Treasury has set a target to raise Ksh293.6 billion in 2025/26 through PPPs. Officials say this will help ease domestic borrowing which is expected to hit Ksh635.5 billion, according to figures revealed at a PPP Symposium in Nairobi on August 11.
Space Projects on the Horizon
One of the biggest is the proposed Malindi commercial spaceport led by the Kenya Space Agency (KSA). Approved in April 2025, the project is now in the procurement phase for a transaction advisor. The spaceport will host satellite launches and other commercial space activities, with international players in telecommunications, climate science and research.
Housing and Education
In housing, the Kenya Defence Forces Residential Accommodation Project is ongoing under a Ksh4.5 billion deal with China Railway Engineering Group. The project is spread across Nairobi, Laikipia, Kilifi and Nakuru and will deliver 3,069 units at various stages of completion.
At the same time, the University of Nairobi’s Purpose-Built Student Accommodation Project will add 4,000 hostel beds. Structured under a 30-year DBFOT model, it got feasibility approval in February 2025 and procurement is expected next financial year.
Food Security Push
The long awaited Galana-Kulalu Food Security Project, worth Ksh12.5 billion, will cover 20,000 acres of maize and soybeans under irrigation. Although it reached commercial close in December 2024, final financial close is pending.
Transport Investments
Transport is a mixed bag. The government cancelled the Nairobi-Mombasa Expressway project, worth Ksh468 billion, in July 2025 after it failed PPP Act criteria. But officials say the project may be revived later.Meanwhile, the Nairobi-Nakuru-Mau Summit Highway is moving forward with Chinese firms CRBC and Shandong Hi-Speed cleared to proceed to project development phase.
Another project is the smart driving licence programme under NTSA worth Ksh45 billion. The deal with Pesa Print and National Bank is a 21-year contract and is at negotiation stage.
Energy Projects
In energy, the 35MW Quantum Menengai Geothermal Power Plant led by Toyota Tsusho Corporation at Ksh15.2 billion started construction in February 2024.
Not all projects make it to the pipeline. The proposed High Grand Falls Dam, a massive hydroelectric project across the Tana River worth Ksh337 billion was terminated in July 2025 after failing compliance checks. Treasury says it may be re-tendered in the future.
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Treasury Bets on PPPs as Billions Flow into Space, Housing, and Energy Projects