The National Treasury is exploring alternative public-private partnership (PPP) models to finance the country’s mega infrastructure projects following the cancellation of Adani Group-led initiatives for the Jomo Kenyatta International Airport (JKIA) and the Kenya Electricity Transmission Company (KETRACO).
Principal Secretary (PS) for the State Department of the National Treasury, Dr. Chris Kiptoo, stated that the country’s fiscal position is untenable, making it impractical to finance key infrastructure projects like the upgrading and modernization of JKIA through the national budget.
He emphasized that taxpayers are already burdened by the current tax regime.
Appearing before the National Assembly’s Public Accounts Committee (PAC) on Monday, Dr. Kiptoo highlighted the urgent need for JKIA’s modernization.
He noted that the airport, designed in 1978 to handle 5–7 million passengers annually, is now managing over 10 million passengers, straining its capacity and functionality as East Africa’s primary aviation hub.
“JKIA, when it was built and designed, was meant to handle about 5–7 million passengers. Today, as the East African hub, it is handling in excess of 10 million passengers. Therefore, it is in dire need of upgrading and modernization to accommodate these numbers,” Dr. Kiptoo told MPs.
The PS explained that the amount required for such a significant project cannot be raised through the national budget.
“The only viable way to finance this is through a public-private partnership (PPP) model. Since Kenyans have rejected the Adani Group, we will need to identify a partner with better ideas and options to execute the project, not necessarily Adani,” he added.
The PS had appeared before the Butere MP Hon. Tindi Mwale led-committee to respond to and address the Auditor General’s report for the financial year ending June 30, 2022, concerning the State Department for the National Treasury.
Funyula MP, Hon. (Dr.) Wilberforce Oundo, emphasized that a majority of Kenyans now favor public-private partnership (PPP) models, citing the successful completion of the Nairobi Expressway as a prime example.
However, he argued that projects like the modernization of Jomo Kenyatta International Airport (JKIA) present challenges that might make them unsuitable for PPP models under certain circumstances.
“PPP is the way to go when it comes to financing mega projects, given the limited and constrained fiscal space our country is currently facing,” Dr. Oundo stated.
He underlined the necessity of PPP models to bridge the gap between ambitious infrastructure goals and the reality of strained public resources.
On his part, Bura MP, Hon. Yakub Adow, also voiced support for PPPs but stressed the critical need for transparency and public engagement in their implementation.
He stressed the importance of conducting thorough public participation to educate citizens, ensuring legitimacy and widespread acceptance of such partnerships.
“The National Treasury must involve the public sufficiently to enlighten the masses and secure legitimacy for these projects. If these deals are shrouded in secrecy, as was perceived in the case of the Adani Group’s proposals for JKIA and KETRACO, it will be disastrous,” Hon. Adow warned.
Chepalungu MP Hon. Victor Koech-Mandazi also agreed that while PPPs represent a viable path forward for financing large-scale projects in Kenya, the government must adopt a transparent, inclusive approach to avoid public mistrust and opposition.
According to Hon. Koech, it state should ensure that all agreements align with the interests of the nation and address concerns raised by all stakeholders.
“If executed properly, PPPs, can play a transformative role in advancing Kenya’s infrastructure agenda without overburdening taxpayers. However, success hinges on transparency, accountability, and meaningful public engagement at every stage of the process,” Koech stated.
