The National Treasury has proposed sweeping changes to Kenya's Public-Private Partnership (PPP) framework, including the removal of the current 30-year limit on PPP contracts in a move aimed at attracting more private investment into infrastructure projects.
The proposed reforms are contained in the Public-Private Partnerships (Amendment) Bill, 2026, which seeks to overhaul how PPP projects are approved, evaluated and implemented. According to the Treasury, the amendments are intended to make the framework more flexible, efficient and attractive to investors.
One of the key proposals is the removal of the provision that limits PPP agreements to a maximum tenure of 30 years. Instead, the duration of each contract would be determined by the nature, complexity and financing structure of the project, in line with the different contract categories provided under the law.
"Clause 6 of the Bill proposes to amend section 21 of the principal Act by deleting subsection (2) which provided that the tenure of a public private partnership contract would be thirty years and to align the section with the tenures of the different kinds of contracts provided for in the Second Schedule to the principal Act," the proposal states.
If approved, the amendment could pave the way for longer-term infrastructure concessions, particularly for capital-intensive projects that require extended periods for investors to recover their investments. The government believes the change could enhance Kenya's appeal as a destination for private infrastructure financing.
The Bill also seeks to reduce the oversight role of the PPP Directorate. Under the proposed changes, the Directorate would no longer review tender evaluation reports prepared by contracting authorities, with that responsibility shifting directly to the state agencies managing the projects.
In addition, contracting authorities would only be required to consult the PPP Directorate during the feasibility study stage, rather than operating under its direction. The proposal signals a shift in the Directorate's role from direct supervision to an advisory capacity.
Another significant amendment would expand the number of public entities eligible to undertake PPP projects by including Government Owned Enterprises in the definition of contracting authorities. This would enable state corporations to independently initiate, negotiate and manage PPP projects.
"The Bill proposes to amend section 32 of the principal Act to provide that a contracting authority shall consult the Directorate when conducting a feasibility study rather than be under the direction of the Directorate," one of the proposed clauses states.
At the county government level, the Treasury wants PPP agreements to be approved by County Executive Committees instead of County Assemblies. According to the proposal, this would align county-level approval processes with those already applied by the national government and potentially accelerate project implementation.
The proposed amendments also introduce measures aimed at improving project delivery. Contracting authorities would be allowed to appoint multiple representatives to project implementation teams, while implementation teams would also be permitted to serve as prequalification committees responsible for assessing prospective bidders.
According to the Treasury, the reforms are designed to streamline decision-making, eliminate unnecessary bureaucratic delays and create a more efficient legal framework for delivering public infrastructure through partnerships with private investors.
Before the Bill is tabled in Parliament, the Treasury is required to conduct public participation as provided by law. To facilitate this process, the ministry has announced a series of public participation forums across various regions beginning Monday, July 13, 2026, where members of the public will be sensitised on the proposed amendments and invited to submit their views.
The Treasury has also called on Kenyans to submit written memoranda and representations on the proposed Amendment Bill and the accompanying draft regulations, which have been made available on the ministry's website.
The proposed reforms come as the government continues to pursue major infrastructure projects through public-private partnerships, including the recently announced Ksh154 billion expansion and modernisation of Jomo Kenyatta International Airport (JKIA).