The government has set its sights on raising Sh70 billion from private investors in the upcoming financial year, using the Public Private Partnership (PPP) model to close the widening infrastructure gap while easing reliance on debt and taxes.

Treasury Cabinet Secretary John Mbadi on Thursday said the State is banking on PPPs to deliver 32 projects that include the construction of electricity transmission lines, dams, and roads.

The shift is part of a broader strategy to reduce pressure on public resources, following years of heavy borrowing that pushed debt levels higher.

"Currently, there are 32 PPP projects at various stages which are targeted to mobilise Sh70 billion in the Financial Year 2025/26 through private investments in priority sectors like energy, water, housing, health and transport," Mbadi said during the presentation of the 2025/26 budget statement.

The planned projects mark a continued pivot away from traditional financing as Kenya seeks alternatives to fund roads, power plants, airports and transmission lines.

Under the PPP model, private investors finance the development and recover their funds through methods such as tolling.

The Treasury had earlier disclosed a list of 33 projects in various phases of the PPP project cycle.

Of these, 15 were undergoing feasibility studies by the end of April 2025, while five others were at the proposal stage.

A key part of the planned investments includes four power transmission lines expected to cost $245.93 million (Sh31.8 billion).

These projects are the 220 kilovolts (kV) Kiambere–Maua–Isiolo line, the 220kV Kwale–Shimoni (Kibuyuni) line, the 132kV Meru–Maua line and the 132kV Kipevu–Mbaraki line.

Several dam projects—among them Ndarugu 2, Galana and Londiani—are also set to be built under the PPP model.

These large-scale water projects are intended to improve access to water and support agricultural and domestic needs across the country.

The growing use of PPPs follows pressure from institutions such as the International Monetary Fund (IMF) to adopt more open and transparent models of development financing.

It also reflects Kenya’s attempt to ease the budget strain caused by a rise in public borrowing over the past five years.