Kenya signed a Sh40 billion contract for the construction of the Galana Kulalu Dam, a flagship project expected to significantly strengthen the country’s food security by enabling large-scale irrigation in Tana River and Kilifi counties.
The agreement, signed between the National Irrigation Authority (NIA) and China Communications Construction Company Kenya Ltd, covers the engineering, construction and financing of the dam alongside its irrigation water conveyance system.
Once completed, the project will irrigate up to 300,000 acres of land in the Galana Kulalu region, marking a major shift from rain-fed agriculture to reliable, large-scale irrigation.
President William Ruto said the dam will have a storage capacity of 305 million cubic metres of water and is projected to deliver up to one billion cubic metres annually.
In addition to supporting agricultural production, the project will supply safe drinking water to about 70,000 households, improving public health and living standards in surrounding communities.
The President noted that increased irrigation will boost agricultural productivity, stabilise food prices, reduce reliance on food imports and enhance export capacity. He added that the project will also support agro-processing and value addition, creating thousands of jobs for young people and driving inclusive economic growth.
The Galana Kulalu Dam is a joint investment project involving the Governments of Kenya and the United Arab Emirates, in partnership with China Communications Construction Company Kenya Ltd.
The Kenyan Government’s contribution will be financed through the National Infrastructure Fund, with returns secured under the existing Water Purchase Agreement Framework within the country’s legal infrastructure.
The contract was formally signed in Nairobi by National Irrigation Authority Chief Executive Officer Charles Muasya and China Communications Construction Company Kenya Ltd Deputy General Manager Du Shan.
The dam is expected to play a central role in transforming the Galana Kulalu Food Security Project into a sustainable agricultural hub and reinforcing Kenya’s long-term food security strategy.
Awarding a Sh40 billion dam construction tender to a Chinese firm reflects Kenya’s reliance on international firms for big infrastructure, brings potential development benefits (water security, jobs, economic growth), and highlights ongoing debates about financing, local industrial participation, and long-term economic impacts.
China has become one of Kenya’s largest infrastructure partners over the last two decades.
Awarding such contracts strengthens bilateral relations, but it also raises discussions about, Kenya’s debt exposure to foreign lenders, dependency on external expertise vs. developing local capacity and the broader role of Chinese investment in Africa’s infrastructure landscape.
There is often debate around how much local firms benefit from these large foreign-led contracts. Chinese firms sometimes import materials or skilled labor from China, which can limit technology transfer or local employment opportunities.
There have been calls in Kenya for procurement rules that require more local participation or joint ventures in big contracts to ensure knowledge transfer and broader economic benefits.
Email your news TIPS to Editor@Kahawatungu.com — this is our only official communication channel
