Transport and energy key to Kenyan programme

Transport and energy PPP projects will be vital if the Kenyan government’s ambitious pipeline is to succeed, it has been claimed.


Mark Smith, lead engagement partner for Deloitte Kenya, said that while the government’s plans to deliver around 60 PPP deals are achievable, it will be the ones in transport and energy – which are vital to the economy – that will be key to unlocking the country’s programme.


Last year, the Kenyan government revealed plans for 59 projects to be delivered through PPP, although this was reduced to 47 later in the year.


"Of the projects announced, it remains to be seen whether all actually get developed," said Smith. "But the ones that I think are important will be those that are linked to transport and energy, and those that have clearly identifiable revenue streams."


He added that the east African country is on the right track to elevate itself economically since the new PPP law was passed in 2013 and with a new framework and PPP unit having been developed it has brought interest from more investors.


"The country has clearly set itself up well for the next few years and has instituted a number of PPP programmes which should start developing results."


Deloitte Consulting was recently selected as lead transaction adviser for the development, operation and maintenance of the second Nyali Bridge PPP in Kenya.