Kenya to utilize PPP for infrastructure projects

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The government of Kenya has introduced Public-Private Partnerships (PPPs) to spur the participation of the private sector in infrastructure development in the country. In 2013, Kenya enacted the PPP Act which paved the way for capital and infrastructure projects to gravitate towards PPPs. The national list of priority projects currently includes over 60 infrastructure projects earmarked for PPPs. This in essence allows for risk-sharing while encouraging innovative ideas by the private sector.

The government has identified and prioritized some specific projects under the PPP model. The Lamu Port-South Sudan-Ethiopia-Transport corridor –LAPPSET, the Konza Techno City, modernisation of aviation facilities, expansion of the port of Mombasa, and the standard gauge railway (SGR) are current on-going flagship projects that will make a significant contribution towards achieving the 10 per cent economic growth target and improve Kenya’s standard of living. The typical contractual structure involve government agencies, a Special Purpose Vehicle, Contractors, lenders and equity providers.

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