Public Private Partnership (PPP) Will Ease Tax, Loan Burden on Kenyans, Says President Ruto

President William Ruto has defended the government’s policy on Public Private Partnerships to finance the national development agenda.

The President said PPPs are meant to ensure that the government does not burden Kenyans with more taxes or loans in the financing of development projects.

He said PPP agreements have helped the country implement major development projects, citing the Standard Gauge Railway.

“It is important to appreciate that the partnership between the public and the private sector gives us a win-win outcome to deliver public services using the efficiency and investment of the private sector,” he said.

The President was speaking during the groundbreaking ceremony for the 35MW Orpower 22 Geothermal Power Plant at Menengai, Nakuru County.

He said the KSh12 billion investment by the Kaishan Group demonstrates the confidence foreign investors have in the country.

President Ruto also witnessed the signing of an MoU between Kenya Electricity Generating Company (KenGen) and Kaishan Group for sustainable green ammonia collaboration.

Consequently, Kenya will manufacture ammonia fertiliser in 24 months for the first time in the country.

“Progressively, we will reduce fertiliser imports into Kenya,” he said.

The President said the government is working with the private sector to harness Kenya’s geothermal potential. He explained that this will enhance the realisation of the country’s goal of achieving 100 per cent clean energy grid by 2030.

President Ruto announced that the 105MW Menengai project will elevate Kenya’s global ranking in geothermal production to 5th overall, proving that economic growth and clean energy development can go hand in hand.

The Orpower Twenty-Two plant is the third facility within the Menengai 105MW complex.

“The commencement of the 35MW power plant project by Orpower Twenty-Two highlights our commitment to unlock Kenya’s vast geothermal potential to drive economic growth,” he said

He called on private investors to fully explore geothermal energy to unlock the country’s potential.

The President noted that only 10 per cent of the country’s geothermal energy has been explored.

“So far, we have tapped only 950MW, a small fraction of our geothermal potential of nearly 10,000MW, leaving immense opportunities still untapped,” he said.

The President reaffirmed the government’s commitment to enhance economic efficiency and industrial competitiveness by lowering electricity costs.

“Our strategy to provide universal access to clean, affordable and reliable energy is clearly on course, and geothermal power remains central to these efforts,” he said.

The President said geothermal energy will decarbonise the national grid and drive the country’s progress towards net-zero.

“As a global leader in this space, Kenya continues to demonstrate how every nation can achieve sustained, rapid and transformative growth, while remaining true to climate action commitments,” he said.

Energy Cabinet Secretary Opiyo Wandayi said the new power plant will “go a long way” in opening the door for investors in need of clean and affordable energy.

“As a ministry, we are committed to enhancing our national grid,” he said.

Nakuru Governor Susan Kihika said the county government is committed to creating a conducive environment for private investors.

Distributed by APO Group on behalf of President of the Republic of Kenya.