Ruto government banks on private investors for power and irrigation boost

Economy · Tania Wanjiku · April 16, 2025
Ruto government banks on private investors for power and irrigation boost
A large scale irrigation process in the Galana Kulalu Food Security project. PHOTO/National Irrigation Authority
In Summary

The report indicates that the government is finalising key negotiations to begin work on power transmission lines and irrigation schemes, among other projects, in partnership with private firms.

President William Ruto’s administration is banking on private sector investment to drive energy, irrigation, and infrastructure development across the country, a report by the Public-Private Partnership (PPP) Directorate reveals.

The report indicates that the government is finalising key negotiations to begin work on power transmission lines and irrigation schemes, among other projects, in partnership with private firms.

At the top of the list is the rollout of electricity transmission lines and substations led by Africa 50, with implementation by Ketraco.

Discussions are ongoing, and the final deal will be presented to the PPP committee for approval.

The energy project will cover the construction of two key transmission lines: a 177-kilometre line between Loosuk and Lessos, and an 84-kilometre line from Kisumu to Musaga.

These will be accompanied by a new 400kV switch station at Loosuk, new substations at Kakamega, and upgrades at existing sites in Lessos, Musaga, and Kibos.

Meanwhile, the revival of the Galana-Kulalu irrigation scheme is also progressing.

The PPP report confirms that the National Irrigation Authority is close to finalising financial arrangements for the Galana Dam project.

The plan, which is still under feasibility, is being pursued by China Roads and Bridges Company.

Selu Limited, which will execute the Galana-Kulalu work, is targeting 20,000 acres of farmland. It aims to produce 720,000 bags of maize and 160,000 bags of soybeans each year for 30 years.

"The private party and the contracting agency are working on fulfilling conditions precedent to financial close," the Treasury report reads.

In Kilifi County, the Sabaki water carrier project has progressed to the contract negotiation stage.

The project, led by Utility Partners One LLP, includes the drawing of 80,000 litres of water daily from the Baricho aquifer, as well as the development of treatment plants and a supporting sewer system.

"In February 2025, the project was granted approval to progress to contract negotiations," the PPP directorate said.

In transport, the government has engaged Everstrong Capital to lead feasibility work on the Nairobi-Mombasa Expressway. The 419-kilometre four-lane road remains under early assessment.

The Treasury also reported a planned cargo scanning project led by Parkison Clarke FZE, which is expected to introduce improved scanning and cargo tracking systems across airports, ports, and borders.

Separately, the National Transport and Safety Authority is planning to source a contractor to supply second-generation smart driving licences.

The Treasury says the project received approval in June last year, pending conditions set for the selected contractor.

Efforts are also underway to secure private partners for Stoni Athi affordable housing and student hostels at the University of Nairobi.

The report confirms that bids for these have already been issued.

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