Kerosi Blog

History of Public Private Partnerships (PPPs) in Kenya

Public Private Partnerships (PPPs) in Kenya

According to Prof. Tom Ogada, Public Private Partnerships (PPPs) involves long term contracts between the state and private sector to provide infrastructure or services.

Kenya has had a long history of Public Private Partnerships. The energy sector takes the lead in success stories in this model.

A part from the state and the private partners, there are other partners involved: Operations and Maintenance Contractors, EPC Contractors; lenders; Equity Investors and Users.

There are risks associated with each and every one of the partners. For users, there is demand risk, tariff risk and  collection risks.

For equity lenders there are credit risks involved while for for operations and maintenance there are operations risks involved.
Stakeholder engagement and public participation are central to successful Public Private Partnerships. That notwithstanding, PPPs have their own disadvantages such dealing with complex projects which are mostly time consuming and can be politicized’

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• David M. Blitzer, PhD

 

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