Cabinet okays PPP framework

December 12, 2008

, NAIROBI, Kenya, Dec 12 – The Cabinet has approved the policy, legal and institutional framework for Public Private Partnerships (PPPs) in the country.

The framework provides for the modalities under which the private sector can undertake, for a specified period of time, to provide a service or goods for the benefit of the public.

“Under the PPP model, Kenya will be able to attract private sector investments in financing infrastructure projects such as water, energy, roads and other transport services. Through PPPs the country can leverage public sector financial resources with private sector investments,” a statement from the Presidential Press Service said late Thursday.

The statement added that the PPPs would especially be critical for the financing of flagship projects under Vision 2030, as the framework allows the private sector to enter into a management contract, a lease, a concession or a build-own-operate and transfer agreement with the government.

Meeting under the chairmanship of President Mwai Kibaki on Thursday, the Cabinet also gave a nod to the establishment of a PPP steering committee to oversee the process.

“The Cabinet also approved a Privatisation Programme that will see a number of public corporations enter into partnerships with the private sector and also gave the green light for the private sector’s participation in the East African Marine System (TEAMS),” PPS added.

The project involves the provision of a fibre-optic communications network via Fujairah in the United Arab Emirates and is estimated to cost Sh8 billion.

As part of the meeting’s resolutions, Kenyans would also be able to participate in partnerships and or shareholding in some state corporations.

PPS disclosed that the government would be inviting the private sector and members of the public to participate in organisations such as Kengen, where the government is expected to sell more shares to the public, the Kenya Pipeline Company and the Kenya Ports Authority among others.

The privatisation of sugar factories was especially critical to ensure that Kenya meets requirements under the COMESA sugar safeguards.

Chemelil Sugar, Nzoia Sugar, Miwani Sugar and Muhoroni Sugar Company have been identified as some of the companies where the government wants to reduce its shareholding and where the public’s participation would be required.

The Cabinet also approved the enactment of the Kenya National Youth Council Bill, which will establish the National Youth Council.

The functions of the council shall be to register, coordinate and monitor all youth groups, youth focused community based organisations and youth serving non-governmental organisations.

“The National Youth Council shall act as the voice and bridge to ensure that the government and other policy makers are kept informed of the views and aspirations of the youth,” the statement reported.

The council shall also promote relations between youth organisations and other bodies and ensure that the youth gain access to resources and services appropriate to their needs.

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