The government has announced plans to make major changes to the public-private partnership (PPP) framework, including removing the current 30-year reference period for PPP contracts.

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Under the proposed Public-Private Partnerships Amendment Bill, 2026, the National Treasury seeks to amend the PPP Act by changing how projects are approved, evaluated, and implemented, arguing that the reforms will make the process more flexible and investor-friendly.

Among the proposals is the removal of the provision that sets PPP contract tenure at 30 years. The proposals, as seen in this publication, show that the length of a PPP agreement would instead depend on the nature and structure of the project, as provided under different contract categories in 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 stated.

📌 What You Need to Know

The change could allow longer infrastructure concessions where projects require extended periods for investors to recover costs, potentially improving Kenya's attractiveness to private investors.

The Bill also proposes reducing the PPP Directorate's oversight role. According to the Treasury, the PPP Directorate would no longer be responsible for reviewing tender evaluation reports prepared by contracting authorities. This will instead leave state agencies with greater responsibility for evaluating bids.

Treasury further proposes that contracting authorities consult the Directorate during feasibility studies rather than operate under its direction, signalling a shift from central control towards a more advisory role for the PPP agency.

The amendments would also expand the number of entities eligible to participate in PPP arrangements by including Government Owned Enterprises in the definition of contracting authorities. This would allow state corporations to initiate 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," stated one of the clauses in the proposal.

At the county level, Treasury wants PPP agreements entered into by county governments to be approved by county executive committees rather than by county assemblies, aligning county procedures with those of the national government.

📰 Source: Kenyans.co.ke