Who we are /
The PPP Unit is the ‘Centre of PPP Excellence in the Country’
We are a specialized unit within the National Treasury, established under section 11 of the PPP Act of 2013. The main role of the PPP Unit is to serve as the secretariat and technical arm of the PPP Committee.
Further, the PPP Unit provides technical support (technical, legal& financial) to various government agencies (contracting authorities) keen to implement PPP projects. In this regard, the PPP Unit supports all the contracting authority right from project identification, through to phases of appraisal, procurement, negotiation, contracting and the operational phases.
For the full mandate of the PPP Unit, click here and refer for Section 14 of the PPP Act 2013
To be the Centre of PPP Expertise in the region
To introduce and communicate PPP Policy, to develop PPP Practice and to take a key role in the sustainable delivery of PPP Projects in Kenya.
Core Values /
As an institution, the PPP Unit is guided by the following values;
- Commitment to Kenyan citizen welfare
Kenya’s Africa Infrastructure Country Diagnostic (AICD) report estimates that, to address the country’s infrastructure deficit will require sustained expenditure of approximately $4 billion per (20% of GDP) over the next decade.
To meet this objective, the Government of Kenya (GOK) has been looking at alternatives targeting additional finance, adopting lower-cost technologies, while prioritizing infrastructure investments.
In this context, the Government of Kenya (GOK) has made infrastructure development through Public Private Partnerships (PPPs) a priority as a mechanism that can help it address the major infrastructure gaps in the country.
GOK has hence committed to improving and strengthening the environment for private sector participation in the country. In this effort to improve the PPP investment climate, the following deliberate initiatives have been undertaken by the government:
- The adaptation of a PPP Policy to articulate the government’s commitment to PPPs and to provide a basis for the enactment of a PPP Law
- The enactment of the PPP Act 2013 on 8th February 2013
- The development of the PPP Regulations in 2014.
- The development of various templates and guidance notes on PPP matters
The GOK is confident that through the PPP modality, the private sector will offer a dynamic and efficient way to deliver and manage public infrastructure. These efforts are geared towards achieving Vision 2030, Kenya’s long-term development strategy, so that future generations can gain from the benefits of modern services, improved living standards and reduced poverty.
The Public Private Partnership Unit (PPP Unit) was therefore established, as a specialized unit within the National Treasury, to promote and oversee the implementation of the GOK PPP Program.
The PPP Unit, as the resource center for best practice and guardian of the integrity of the PPP process, plays a key role in identifying problems, making recommendations to the PPP Committee regarding potential solutions, and ensuring that projects meet such quality criteria as affordability, value for money, and appropriate transfer of risk.
IFPPP Project /
The establishment of the PPP Program in Kenya was supported by both the government and the Infrastructure Finance and Public Private Partnerships (IFPPP) Project of the World Bank.
The Infrastructure Finance and Public Private Partnerships (IFPPP) Project is a Government of Kenya “first of a two-phased” Adaptable Lending Program (APL) financed by a credit from the International Development Association (IDA). The credit became effective on 12thFebruary 2013.
The overall objective of the IFPPP Project is to provide technical assistance to increase private investment in the Kenyan infrastructure market and to sustain this participation over an extended period of time.
By helping strengthen the PPP enabling environment/framework, the IFPPP APL phase I project has assisted the GoK develop a solid foundation to systematically prepare PPPs and realize the benefits of PPPs more effectively, including:
- Increased private investments in infrastructure
- Increased employment opportunities
- Improved service delivery to enterprises and the population in general
- An improved fiscal impact on government from better project preparation
- More balanced risk allocation
- Increased transparency
- Wider quality control
- Greater efficiency
- Enhanced financial sector support
This framework has also enabled an increase in the availability and quality of infrastructure in different sectors to boost enterprise growth and productivity and improve the well-being of Kenyans.
The IFPPP Project comprises of four components:
- Component 1: Support institutional development and regulatory reform
- Component 2: Support preparation of a pipeline of PPP transactions
- Component 3: Support improvement of the Fiscal Commitment Contingent Liability (FCCL) framework associated with PPP Projects especially infrastructure
- Component 4: Support program implementation
The PPPU, under the authority of the Director, acts as the overall Implementing Agency for the IFPPP project. The project is implemented with the support of a Project Implementation Unit (PIU) reporting to the Director – PPPU.
PPP Committee /
Section 4 of the Public Private Partnership (PPP) Act, 2013 provides for the establishment of the PPP Committee, with membership comprising 6 members from the Government and 4 private sector members
Functions of the PPP Committee
- Ensure compliance of the PPP Act
- Formulate policy guidelines on PPPs
- Ensure PPP projects are consistent with national priorities
- Approve project proposals submitted by contracting authorities
- Authorize allocations from project facilitations fund (PFF)
- Formulate/approve standards, guidelines and procedures for awarding PPP contracts and standardized bid documents
- Examine and approve PPP visibility studies
- Ensure prudent fiscal management of government support granted to PPP projects
- Ensure efficient implementation of ppp agreements