Governors demand changes in partnership law to encourage more private investments

Governors have asked the national government to re-examine the public-private partnership law, claiming it is hostile to investment.

The Public Private Partnership Act, commonly known as PPP, was established to guide Government and private partners in ensuring that projects are well structured and delivered in line with expectations.

The framework was meant to achieve this by outlining procedures and rules for various institutions, and by ensuring effective public financial management and oversight.

Speaking at the ongoing Devolution Conference Tuesday, Meru Governor Kiraitu Murungi said since the Act's establishment six years ago, no project had been implemented in the country under its articulated objectives and procedures.

He said the law set too many layers of approvals and bureaucracy that stifled investment.

“This is the message we are conveying to the national government - to halt the PPP Act so that life can be easier for those who want to invest and partner with the counties,” said Kiraitu.

Kisumu Governor Anyang’ Nyong’o said the law had a negative impact on industrial development by private entities in the counties because it contained some aspects that were difficult fulfil.

“At this point, there is need to establish laws that encourage public-private partnership and attract investment in counties,” said Prof Nyong’o.

He argued that if well reviewed, the law would be efficient.

In response, Industry, Trade and Co-operatives Cabinet Secretary Adan Mohamed said the Government was studying laws that slowed down development and welcomed proposals from the governors.

“We are asking the county governments to identify other ways of making the PPP practical,” said the CS.