Kenya is losing over KSh 600 billion through stalled and mismanaged public infrastructure projects caused by corruption, poor oversight, and weak implementation of laws.
Corruption risks in Kenya's PPP infrastructure projects
Despite the government’s Bottom-Up Economic Transformation Agenda for Inclusive Growth, infrastructure delivery remains largely unrealized, even with billions allocated. Alongside rising debt, these issues weigh heavily on the economy and citizens’ wellbeing.
In February 2025, Kenya scored 32 out of 100 on the Corruption Perceptions Index—up from 31 in 2023—ranking 121 out of 180 countries. This score falls below both the Sub-Saharan average of 33 and the global average of 43 (scores below 50 indicate serious corruption).
Kenya’s stagnant score underscores persistent corruption challenges, particularly in infrastructure projects implemented under the PPP model.
Kenya's infrastructure landscape
Like many countries, Kenya uses PPPs to deliver capital-intensive infrastructure across sectors such as agriculture, water, energy, health, housing, transport, ICT, and the blue economy.
By 2024, KSh 140.7 billion had been mobilized in private capital for PPP projects, according to the 3rd Annual Report on PPPs (FY 2023/24).
The Public Private Partnerships Act, 2021, provides for private sector participation in financing, developing, and operating infrastructure. Supporting laws include the PPP Regulations (2014), Project Facilitation Fund Regulations (2017), and the Public Procurement and Disposal Act (2015).
Procurement follows four methods under Section 37 of the PPP Act:
- direct procurement
- privately initiated proposals (PIPs)
- competitive bidding
- restricted bidding.
Infrastructure governance challenges
Kenya’s infrastructure sector continues to face major challenges, including weak enforcement of laws governing PPPs—an ongoing barrier to effective Public Investment Management (PIM).
Recent reports highlight misuse of privately initiated proposals (PIPs) as a procurement method. For instance, the government cancelled a PIP by the Adani Group for the JKIA expansion and another power transmission project over transparency and value-for-money concerns. The Office of the Auditor General has also repeatedly flagged irregularities in PPP projects.
TI Kenya's engagement plans
According to the 2025 Projects Progress and Status Report, Kenya has 37 PPP projects—8 under implementation and 29 at various stages.
Sixteen of these are PIPs across sectors such as transport, energy, water, health, agriculture, environment, and education.
TI Kenya will focus on case studies from the National Affordable Housing Programme (Boma Yangu) and the Standard Gauge Railway, applying the Infrastructure Corruption Risk Assessment Tool (ICRAT).
Planned activities include:
- staff training on ICRAT use
- assessing identified projects with ICRAT
- consultative engagements with experts and CSOs
- validation meetings on assessment findings
- awareness campaigns using multimedia and advocacy materials
Why ICRAT matters in Kenya
The ICRAT assessment will generate evidence to guide targeted interventions that strengthen transparency, accountability, and integrity in Public Investment Management (PIM). Ultimately, this aims to ensure infrastructure projects deliver real benefits to communities across Kenya and other developing countries.