The National Treasury has rejected claims that Kenyan taxpayers could face losses of up to Sh317 billion following the cancellation of the High Grand Falls Dam Project tender.
In a statement released on Wednesday, September 24, 2025, the Treasury clarified that no binding Public-Private Partnership (PPP) agreement had been signed for the project, meaning the government carries no financial responsibility.
"Under the Public Private Partnerships (PPP) framework, no obligation arises until a binding PPP Project Agreement approved by the PPP Committee is signed by project parties. We wish to confirm that no project agreement was signed for this project, and therefore no such liability exists for the government," the Treasury said.
The project had been submitted as a Privately Initiated Proposal by the GBM consortium in January 2023 and approved to enter the project development phase.
However, after reviewing the development report, the PPP Committee in July 2025 found it did not meet statutory requirements. The committee subsequently approved termination under Section 43(11)(c) of the PPP Act and recommended a fresh competitive procurement process.
The Treasury also dismissed allegations that the PPP Committee acted under foreign influence, emphasizing its independence and fiduciary responsibility.
"The Committee is an independent statutory body that has a fiduciary responsibility in the conduct of its business. The proposal by the GBM consortium underwent evaluation and the proponent was accorded a number of opportunities to provide clarifications," the statement read.
The statement noted that a separate proposal from Électricité de France (EDF) demonstrated broader market interest, legally requiring the project to follow an open and competitive process.
On reports suggesting GBM had already won the tender, the Treasury clarified that a previous process under the Public Procurement and Asset Disposal Act in 2017 had been terminated by the courts, and the current proposal was a completely separate application under the PPP framework.
"The National Treasury affirms that the decision to terminate the High Grand Falls Dam Project under the PPP framework was lawful, transparent, and fully in line with the PPP Act," the statement added.
Treasury and Economic Planning Cabinet Secretary John Mbadi reassured Kenyans that the government remains committed to implementing infrastructure projects that are sustainable, viable, and beneficial, while maintaining high standards of accountability and transparency.