Private investors awarded Public-Private Partnership (PPP) projects could soon be required to reimburse the government for part of the cost of preparing the projects under proposed changes to Kenya’s PPP law.
The proposed Public Private Partnerships (Amendment) Bill, 2026 introduces a success fee of up to one percent of the total project cost, payable by private investors once a project reaches financial close.
The government says the fee is intended to recover costs incurred during project preparation, including feasibility studies, transaction advisory services and other development expenses.
According to the Bill, the money collected will be deposited into the Public Private Partnership Project Facilitation Fund to support the preparation of future PPP projects.
Treasury Cabinet Secretary John Mbadi said the proposed changes are aimed at ensuring the government recovers part of the resources spent in developing projects before they are handed over to private investors.
“The Directorate shall impose a success fee not exceeding one per cent of the total project cost of a transaction payable by a private party that achieves financial close on a project,” the Bill states.
The proposed legislation also seeks to expand the responsibilities of the Public-Private Partnership Committee, which oversees the implementation of PPP projects.
Under the amendments, the committee will advise government agencies on project structuring, procurement processes and tender evaluations. It will also oversee project appraisal and development, provide technical support during project implementation and guide the selection, ranking and prioritisation of PPP projects.
In addition, the Bill empowers the PPP Directorate to develop guidelines on how the success fees will be allocated and used to recover project preparation costs.
“The Directorate may issue guidelines on the allocation of costs and disbursements on success fees imposed under this section in relation to recoverable project costs,” the Bill states.
If approved by Parliament, the proposed amendments are expected to strengthen the financing and management of Kenya’s Public-Private Partnership programme while reducing the government’s financial burden in preparing large infrastructure and development projects.
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