NAIROBI, Kenya Sep 17 – The High Court has declared parts of Kenya’s Public-Private Partnerships (PPP) Act unconstitutional, ruling that Parliament must have oversight over PPP projects that create financial obligations for the national government.

📻 Breaking It Down

However, the court has suspended the effect of the declaration for six months to allow Parliament time to amend the law.

The decision arose from a petition challenging the legal framework governing privately initiated PPP proposals, including projects involving the Greenfield International Airport (GKIA) and the Kenya Electricity Transmission Company (KETRACO).

Although the two projects had been cancelled by the time the petition was heard, the court declined to dismiss the case, holding that the cancellation did not resolve the broader constitutional questions raised by the petition.

📌 What You Need to Know

The court considered issues concerning the legality of PPP approval processes, protection of public funds and accountability in the management of government financial obligations.

At the centre of the case was whether the PPP Act gives Parliament sufficient oversight over projects that could create significant financial obligations for the government.

The petitioners argued that certain provisions allowed the Executive and the PPP Committee to make decisions that should be subject to parliamentary approval.

The court agreed in part, holding that Parliament has a constitutional responsibility to oversee public finances, including government expenditure and public liabilities.

It ruled that the government cannot use a PPP arrangement to bypass parliamentary approval where a project creates a financial obligation for the country.

Such obligations may arise where the government is required to make payments to a private partner, provide guarantees, contribute public funds or assume debt and other liabilities.

📰 Source: Capital FM Kenya