The new Private Public Partnership Act is the basis for a unique model of infrastructure development now being pursued by the Government.
Under it, private firms will win contracts to build roads using loans from banks guaranteed by the Government. They will then get repaid over an eight-year period in equal instalments.
On the face of it this a great idea because the pressure of ensuring the roads are completed on time falls on the construction firms, who must meet the deadlines in order to get paid.
They can borrow as much as Sh260 billion at any one time, and it also means they do not have to wait for Treasury to release funds in order to complete construction.
One of the reasons road construction takes so long is because contractors have to wait for the Government to release the funds.
In the past, this has been used to facilitate corruption by some unscrupulous contractors who over-bill the Government in order to pay kickbacks. It is hoped the new financing model will ensure faster construction.
Unfortunately, it could also raise the cost of building the roads, including those in the counties, with the interest on the loans spread over eight years.
If that happens, then the only real winners will be the banks. One danger is that some contractors may attempt to reduce their costs by cutting corners leading to shoddy construction.
It will therefore be important that the contracts signed between all three parties have safeguards to guarantee that the roads meet Government standards.
One hopes that the maintenance of the roads during the eight-year annuity period for the loan will also be secured.
The era of cowboy contractors was at its heyday in the mid to late nineties and was only halted by the former Narc government's decision to blacklist the worst of the lot, and of course bring in the Chinese firms.
Quality control will be especially critical. Contractors who build roads that fall apart before the expiry of the annuity should find it hard to defend the quality of their work.
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