NAIROBI, Kenya, July 8 – Private investors awarded Public-Private Partnership (PPP) projects could soon be required to reimburse the government for project preparation costs under proposed amendments to Kenya’s PPP law.
The proposed Public Private Partnerships (Amendment) Bill, 2026 requires successful bidders to pay a success fee of up to one percent of the total project cost once a project reaches financial close.
The fee is intended to help recover expenses incurred by the government during project preparation, including feasibility studies, transaction advisory services and other development costs.
Treasury Cabinet Secretary John Mbadi said the proceeds will be paid into the Public Private Partnership Project Facilitation Fund.
“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 Bill also proposes expanding the role of the Public-Private Partnership Committee, which will oversee the implementation of PPP projects.
Among its responsibilities will be advising contracting authorities on project structuring, procurement and tender evaluations, overseeing project appraisal and development, providing technical support during implementation, and guiding the selection, ranking and prioritisation of PPP projects.
The legislation further empowers the PPP Directorate to issue guidelines on how 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.
