Government ministries, State departments and parastatals are set to take greater control of awarding public-private partnership (PPP) contracts under proposed legal changes that would remove the National Treasury's PPP Directorate from approving tender evaluation reports.
The proposed amendments to the Public Private Partnerships (PPP) Act seek to shift more decision-making powers to contracting authorities, which already manage most stages of the procurement process.
If approved by Parliament, the changes will allow the agencies to identify and award successful bidders without the PPP Directorate reviewing their tender evaluation reports.
The National Treasury has tabled the Public Private Partnerships (Amendment) Bill, 2026, which also proposes reducing the directorate's involvement in some approval processes while leaving it with its broader coordination and oversight role.
The Bill further proposes that contracting authorities will no longer need approval from the PPP Directorate before submitting project and financial risk assessment reports to the directorate.
"Clause five of the Bill proposes to amend Section 19 of the principal Act to provide that the Public Private Partnerships Directorate shall not be responsible for reviewing tender evaluation reports prepared by contracting authorities," reads part of the Public Private Partnerships (Amendment) Bill, 2026 tabled by the National Treasury.
"Clause 14 of the Bill proposes to amend Section 58 of the principal Act to clarify that the approval of the directorate is not required when the contracting authority submits a project and financial risk assessment report to the directorate."
The proposed law also seeks to make it easier for contracting authorities to use direct procurement. It removes the current requirement that such procurement can only be used where works or services are available from a limited number of private parties.
Another amendment changes how feasibility studies for PPP projects are handled by requiring contracting authorities to consult the PPP Directorate instead of taking direction from it during the process.
At present, the PPP Act requires contracting authorities to identify, screen and prioritise projects using guidance issued by the PPP Directorate before undertaking the tendering process. They also provide technical expertise whenever needed during project evaluation and appraisal.
Even with the proposed amendments, contracting authorities will still be required to submit regular reports on the implementation of project agreements and maintain records of all documents and agreements relating to PPP projects.
The PPP Directorate will continue serving as the lead institution for implementing PPP projects. Its responsibilities will include coordinating the identification, ranking and prioritisation of projects within the public budget framework, overseeing project appraisal and development by contracting authorities, and providing technical support during implementation.
The government has increasingly relied on PPPs to finance major infrastructure developments in sectors such as roads, energy and water as pressure on public finances grows because of rising recurrent expenditure, including debt interest payments and public sector wages.
According to the Treasury Directorate, Kenya had 51 PPP projects as of April 2026. Ten of the projects were under implementation, while 41 were either in the pipeline or at different stages of the PPP project cycle.
Six projects have already been completed and are operational, among them the Nairobi Expressway, the 35-megawatt OrPower 22 Menengai Geothermal Power Plant Project and the Galana-Kulalu Food Security Project.
Four other projects are under construction, including the Kenya Defence project.