Public-private partnership projects can involve long procurement periods, public approvals, finance documents and allocation of construction, operating and political risk. Kenya’s Public Private Partnerships Act 2021 provides the framework, but each project must be assessed against its own procurement documents, approvals and commercial assumptions.
What should an investor examine first?
- The procuring authority, project mandate and procurement route.
- The project agreement, risk allocation and required government approvals.
- Land, environmental, regulatory and community requirements.
- The proposed revenue model, payment security and currency exposure.
- Conditions for financing, step-in rights, termination and dispute resolution.
Why the legal structure matters
A project may require a Kenyan project company, approvals for foreign investment, tax and customs analysis, permits, insurance and employment planning. Lenders will usually review the procurement record, security package, direct-agreement terms and enforceability of the project documents. These matters should be reviewed before a bid position is fixed or funds are committed.
Plan for change and disputes
Infrastructure projects can be affected by variations, delay, exchange-rate pressure, regulatory change and performance disputes. The contract should address notice, relief, payment, records, escalation and the selected dispute forum. A carefully drafted process does not remove risk, but it gives the parties a clearer way to manage it.
See our project finance and infrastructure practice for related guidance. This article is general information and not investment or legal advice.