NAIROBI — Kenya’s National Treasury has defended the use of a Public-Private Partnership (PPP) model in the construction of the Rironi–Nakuru–Mau Summit Highway, saying the project remains under full public ownership despite growing public concern.
In a statement released on 26 October 2025, the Directorate of Public Private Partnerships said the PPP approach is a practical response to Kenya’s tightening fiscal space, with the government facing rising debt obligations and limited capacity for new borrowing.
“Kenya’s national budget is under pressure from social and economic demands, recurrent expenditure, and debt-service obligations,” the Treasury noted. “The PPP model allows the country to attract private investment without straining public finances.”
The 233-kilometre highway is among Kenya’s most ambitious road projects, linking key economic regions along the Northern Corridor. Officials said the road will be developed through a Design–Build–Finance–Operate–Transfer model, under which a private partner will fund, build, and maintain the road for 30 years, before transferring operations back to the state.
Treasury officials stressed that the road “remains wholly owned by the Government of Kenya,” and that the private partner’s involvement “does not compromise public ownership or control.”
Under the agreement, the investor will recoup its funds through toll charges, a model the government says is common in countries such as South Africa, Zambia, Senegal, Morocco, and Egypt.
The statement further clarified that the arrangement aligns with the Public Private Partnership Act, 2021, which allows Kenya to mobilise private capital while retaining full regulatory oversight. “The government maintains full control and step-in rights in the event of non-performance,” the Treasury said, assuring that “the public interest remains fully protected.”
Officials also argued that continued reliance on taxes and borrowing to finance major projects is unsustainable. Kenya’s road network requires an estimated KSh 4 trillion over the next decade, but the available maintenance funds fall far short of that need.
“The Road Maintenance Levy Fund collects about KSh 100 billion annually, yet our yearly maintenance needs stand at roughly KSh 253 billion,” the Treasury stated. “This gap makes private investment essential.”
While public debate has questioned the tolling model, the Treasury maintains that the PPP approach preserves fiscal stability and delivers modern infrastructure faster. The statement concluded by reaffirming the government’s commitment to “accountability, national ownership, and uninterrupted public service.
About the Author
