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Originally published by The Standard Business
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August 25, 2025
2h ago

State agencies urged to prioritise PPPs in budgeting

State agencies urged to prioritise PPPs in budgeting

The National Treasury insists that allocations for the year to the State agencies will be based on the robustness of their public participation engagement in the budgeting process...

✨ Key Highlights

The Kenyan National Treasury has mandated that state agencies, ministries, and departments prioritize Public-Private Partnerships (PPPs) for funding in their 2026-2027 budget requests. National Treasury Cabinet Secretary John Mbadi stated that no allocations will be made for projects that can be funded through PPPs, emphasizing the country's shrinking fiscal space.

  • No allocations will be made if projects can be funded via PPPs or if there's no documentary evidence of public participation.
  • CS John Mbadi highlighted Rironi–Mau Summit Highway and Galana Kulalu as examples of successful PPPs.
  • Kenya's fiscal space has shrunk, with development allocations dropping to 9.2 percent of the budget, from a previous 21 percent.

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State agencies urged to prioritise PPPs in budgeting