Reform of the Public Private Partnerships Regulatory Framework in Kenya: the Case of Privately Initiated Investment Proposals

Abstract

The use of Public Private Partnerships (PPP) has been increasing over the decades, more so the use of Privately Initiated Investment Proposals (PIIPs) for PPP project implementation. However, most PIIPs as compared to solicited proposals by the Public are often considered as contentious, offer poor value for money due to lack of competition and lack transparency and accountability. This paper explores the status of PIIPs in the PPP legal regulatory framework in Kenya and whether there are safeguards made to ensure there is value for money, transparency and accountability in PPP project implementation. The paper makes an analysis of the principles of PPPs as provided by World Bank and UNICTRAL and how the provisions of PPP Act comply with the set principles. The paper discusses the emerging approaches for management of PIIPs for PPP project implementation. In addition, suitable procurement methods for managing PIIPs are explored in this paper. It reveals that the PPP legal regulatory framework in the area of PIIPs is not in line with international provisions and that there are reforms required on the regulatory framework in the area of PIIPs. The critical approaches for managing proposals include providing clear policy guidelines for PIIPs by the Government valuation of value for money, innovation and cost of proposals and clear legal regulatory framework on PIIPs This paper makes proposals that will inform policymakers on significant measures essential in attaining value for money and public interest and benefits for PIIPs.