The Public Private Partnership Unit (PPPU) is established under Section 8 of the Public Private Partnership (PPP) Act, 2013 as a Special Purpose Unit within the National Treasury of the Government of Kenya (GOK).
The PPP Unit's focus is to serve as the secretariat and technical arm of the PPP Committee, which is mandated with assessing and approving PPP projects in the country.
What are PPP Regulations?
While the PPP Act, 2013 provides a broad legal and regulatory framework for PPPs, the regulations aim to provide:
PPPs Before the PPP Act, 2013:
Before the enactment of the PPP Act 2013, PPPs had been undertaken in Kenya under various frameworks:
All PPP transactions before 2013 were undertaken without a clear government policy on PPPs. Furthermore, the various legal frameworks that supported PPPs during that period were historically not well-suited to the specialized nature of procuring PPPs, and instead applied traditional systems of procurement for works, goods and services. The effect was unstable contractual arrangements that precluded strong project screening and identification standards, and which consequently led to frequent renegotiation of undertakings by private sector partners. The outcome was a historically weak to negative project performance under PPP contracts, an experience that increasingly drove a negative track record to PPPs in Kenya.
PPPs After the PPP Act, 2013:
Public Private Partnership (PPP) Act, 2013:
In order to strengthen the legal and regulatory framework for PPPs, the Public Private Partnership (PPP) Act, 2013 was enacted into law in December 2012 and became effective on 8th February 2013.
Key highlights of the PPP Law:
The PPP Act 2013 also establishes a Petition Committee mandated to consider all petitions and complaints submitted by a private party during the process of tendering and entering into a project agreement.
Currently, a number of actions are on-going to operationalize the PPP Law including:
Click here for a copy of the PPP Act 2013.
In April 2012, the GOK issued a policy statement to articulate its commitment to Public Private Partnerships (PPP) and to provide a basis for the enactment of a PPP Law.
The PPP Policy addresses three principal parameters of PPPs in Kenya:
The Government has furthermore included a clear policy implementation framework in the PPP Policy Statement, signalling a firm commitment to its intention to fully implement the policy priorities embedded therein.
Click here for a copy of the PPP Policy.
The provision of public infrastructure (including power, roads, rail, sea and airports) and services (including water, health and sanitation) is a key mandate of governments the world over. These public goods are a fundamental prerequisite for economic growth and development.
Fiscal constraints experienced by countries, however, have resulted in the development of new and innovative approaches to the provision and financing of public infrastructure and services, gradually supplementing the traditional role of government as the primary provider of such infrastructure and services. In Kenya, therefore, the adoption of a Public Private Partnership (PPP) framework reflects the Government’s desire to improve the quality, quantity, cost-effectiveness and timely provision of much needed public infrastructure and services in Kenya.
The private provision of public infrastructure and services has the potential to offer enhanced value for money and enables the Government to use the private sector’s delivery and project completion expertise and capability for the benefit of the people.
Since 1996, Kenya has attracted private investments into the country’s economic infrastructure sectors including telecommunications, energy, transport, water and sewerage.
These investments have demonstrated both the commitments of Government of Kenya (GOK) to PPPs and the interest by private investors, lenders and operators in these sectors. However, these infrastructure investments occurred without a specific policy, legal and regulatory framework for PPP.
Therefore, the GoK's first step was to strengthen the legal and regulatory framework for carrying out PPPs in Kenya as part of a wider agenda of increasing private sector investments in infrastructure development:
Public Private Partnership (PPP) Unit
P.O BOX 30007 - 00100
Tel: 020 - 2252299
In nearly every country adopting PPPs as a broad instrument of policy, the need has been recognized for a “Centre of PPP expertise” which is the Vision vested with our Mission “To introduce and communicate the PPP policy...