Establishing an Effective Regulatory Framework for Ppps in Kenya

Abstract

The provision of public infrastructure and services is a key mandate of the Government. The provision of these services are a fundamental prerequisite for economic growth and development. However, fiscal constraints experienced by countries have resulted in the need for developing new and innovative strategies to the provision and financing of public infrastructure and services, gradually supplementing the traditional role of government as the primary provider of such infrastructure and services. The private sector provision of public infrastructure and services has the potential to offer enhanced value for money and enables the Government to use the private sector’s delivery and project completion expertise and capability for the benefit of the people. PPPs are therefore a significant economic vehicle if well implemented and regulated. Any loopholes in the regulatory framework may result to significant wastage, bottlenecks in the implementation of the programmes and eventually eroded public confidence in the system. An over regulated regime in the sense of heavy government involvement may be counter-productive as it may put off the potential private sector investors. Conversely, a regime that is under regulated may result to lack of transparency and accountability. The study seeks to interrogate the existing PPP regulatory system in Kenya as well as propose recommendations on how the system could be improved to ensure effectiveness in the implementation of PPP projects to facilitate economic growth and development in the country.