Public-private partnerships will help Kenya to realise its energy dream

Under the PPP model, projects undergo rigorous screening and evaluation to ensure they deliver value for money. Section 40 of the Public Private Partnership Act provides for Privately Initiated Proposals, allowing private entities to propose innovative infrastructure projects.

Such project proposals are evaluated meticulously to determine their feasibility and alignment with national priorities. By opening the door to innovative project designs and advanced technologies, PPPs and PIPs foster an environment that is conducive to economic growth and progress in the energy sector.

One of the most significant advantages of PPPs and PIPs is the transfer of risks from the public to the private sector. Financing risks, site acquisition challenges, design complexities, and construction delays - these are managed by private partners, freeing the government to concentrate on other critical areas such as food security.

This risk-sharing model also ensures that private parties are incentivised to meet their deadlines and deliver high-quality services since their payments are directly tied to their performance. This results in more efficient execution of projects, reducing the delays often associated with public undertakings.

Engaging with established private industry players, with global footprints, is another advantage. These companies bring a wealth of experience and technical expertise to Kenya's power transmission sector. Their involvement introduces global best practices and innovative solutions to our energy landscape.

PPPs also ensure that public funds are utilised judiciously by leveraging private investment. Through meticulous screening and suitability tests, we ensure that only projects offering optimal value to the government and citizens are undertaken. Skilled transaction advisors guide the preparation and structuring of these partnerships, helping us navigate the complex landscape to secure the best outcomes for the nation.

Furthermore, PPPs are structured to guarantee accountability and quality. Payments to private partners are contingent on their performance, motivating them to maintain high standards in operations and maintenance. This translates into a more reliable power supply for consumers. In addition, local content provisions in PPP contracts ensure job creation and skill development for Kenyans, especially in project areas. This is not just about building infrastructure; it is about building a future where every Kenyan can benefit from the country's progress.

Our resolve to embrace PPPs and PIPs in power transmission is, therefore, a strategic response to evolving challenges and the urgency of our energy and economic goals.