Adopted Public Private Partnership Act, 2021
09 Dec 2021
On 9 December 2021, Kenya enacted the Public–Private Partnership Act, No. 14 of 2021, which entered into force on 23 December 2021, repealing the 2013 Act. The new legislation introduces a streamlined and more efficient regulatory framework for public–private partnerships (PPPs), including the following:
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Institutional reforms. Establishes a Public–Private Partnership Committee and a Directorate of Public–Private Partnerships, replacing the former Public–Private Partnership Unit and Nodes.
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Regulatory powers. Empowers the Directorate to issue binding guidelines.
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Procurement. Introduces new procurement methods, including restricted bidding and direct procurement.
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Approval process. Streamlines approvals and sets clear timelines for key project stages.
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County involvement. Enhances the role of county governments by requiring approvals from both the County Assembly and the Committee.
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Project facilitation fund. Creates a Public–Private Partnership Project Facilitation Fund.
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Fees. Introduces mandatory success fees at financial close and non-refundable review fees for privately initiated proposals.
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Revenue-sharing. Provides for revenue-sharing mechanisms in project agreements.
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Dispute resolution. Establishes a Petition Committee to address complaints and disputes.
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Local content. Emphasizes local content requirements to support economic development.
These reforms are intended to reduce bureaucratic hurdles, promote transparency and increase private sector participation in Kenya’s public–private partnership projects.
Nature of measure:
Type:
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Entry and establishment (Ownership and control)
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Promotion and facilitation (Investment facilitation , Investment promotion)
Industry:
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Unknown/undefined sectors
Inward FDI:
Yes
Outward FDI:
No
Sources:
