REQUEST FOR PROPOSALS (RFP) FOR PROVISION OF TRANSACTION ADVISORY SERVICES FOR KPA PORT PROJECTS – ADDITIONAL

Given the capital nature of port investment, the Authority is financially constrained to
support implementation of its long-term investment plans, using internally generated
funds. In view of the foregoing, the Authority is seeking strategic partners to invest in Port
development in the form of PPP arrangements.
1.4. PPPs IN KENYA
Established initially under the Public Procurement and Disposal (Public Private Partnership)
Regulations, 2009, the PPP Directorate of the Government of Kenya has in the recent past
committed to improving and strengthening the PPP framework for private sector
participation in the country. Several accomplishments are notable:
i. The adoption of a PPP Policy in 2011 to articulate the Government's
commitment to PPPs and to provide a basis for the enactment of a PPP Law;
ii. The enactment of the Public Private Partnerships Act on 8th February 2013;
iii. The issuance of the National PPP Regulations on 19th December 2014;
iv. The issuance of the PPP Petition Guidelines in 2014;
v. The issuance of the PPP Project Facilitation Fund Regulations on 12 May 2017;
vi. The development of a PPP Financial and Contingent Liability Management
Framework;
vii. The repeal of the 2013 Act and enactment of the PPP Act 2021; and
viii. Development of the (draft) PPP Regulations, 2025.
To support the delivery of the country’s PPP agenda, a number of institutions were also
created under the PPP Act of 2021 and have been fully operationalized. The roles and
responsibilities of this institutions are defined in the Act. The Institutions include the:
5
i. Contracting Authorities
ii. PPP Committee
iii. PPP Petition Committee
iv. PPP Directorate
The PPP Act of 2021 recognizes Contracting Authorities (CA) as Ministries/Government
Departments, County Governments and Statutory Corporations. Their main
responsibilities with respect to PPP are to identify, develop, implement, and monitor
projects. To discharge their responsibilities, contracting authorities are required to conduct
feasibility studies, prepare bidding documents, and seek necessary approvals.
Each CA undertaking a PPP project is required to establish a Project Implementation Team,
with officers with the ability to carry out day-to-day management of a PPP project (section
31 of the PPP Act, 2021). Where Contracting Authorities do not have in-house expertise
on PPP, they may need to appoint Transaction Advisors (TA) to assist them in the
development of projects, through the full PPP project cycle.
1.5. Government Strategy on Domestic Capital Mobilization
Kenya’s domestic financial markets comprise a strong and diversified ecosystem of
commercial banks, pension funds, insurance companies, fund managers, collective
investment schemes, and retail investors. Together, these actors represent a substantial and
growing pool of long-term domestic capital capable of supporting the country’s
infrastructure and PPP pipeline through debt, equity, and blended-finance instruments
aligned with the Public–Private Partnership (PPP) Program.
As of June 2023, Kenya’s pension industry managed assets totaling approximately KES 1.7
trillion, equivalent to about 13% of GDP, making it a cornerstone of patient and
predictable long-term capital for infrastructure development. The insurance sector, with
assets estimated at around KES 1 trillion, continues to expand steadily as regulatory reforms
encourage greater exposure to infrastructure-linked and long-term investments.
Meanwhile, the banking sector held total assets exceeding KES 7.3 trillion—equivalent to
more than 55% of GDP—demonstrating deep liquidity and strong capacity to support
project financing and investment in capital-market instruments.
Beyond institutional investors, Kenya’s retail market—comprising individual savers,
SACCO members, and small-scale investors—holds considerable potential to contribute to
infrastructure financing. As of 2023, Kenya’s SACCO movement managed over KES 1
trillion in assets, reflecting a vast base of member savings that could be mobilized through
structured investment products.
6
Although Kenya’s financial system is deep and diverse, it has barely realized its potential in
financing PPPs. This shortcoming is not due to a lack of capital, but rather the absence of
deliberate coordination and structured engagement of domestic financial institutions in PPP
origination, structuring, and investment.
The deliberate inclusion of local institutional and retail investors not only strengthens
domestic resource mobilization but also serves as a natural hedge against political and
sovereign risk. When citizens, pension funds, and local financial institutions co-invest in
PPPs, they help anchor projects in national ownership, deepen accountability, and build
resilience against external financing shocks and policy uncertainty.
Recognizing this untapped potential, the Government of Kenya has adopted a strategic
policy direction to crowd in domestic capital for long-term infrastructure delivery. This
policy direction has been reinforced through the Government’s decision to establish the

[{"role": "2 Qualification Requirements and Competencies for Key Experts", "registration_body": "ISK"}, {"role": "Position Expertise Required", "qualification": "degree in Management", "experience_years": 15, "registration_body": "ISK"}, {"role": "at least three (3) projects located in Sub-Saharan Africa,", "qualification": "degree in Finance or any other relevant field + CPA, CPA", "experience_years": 10}, {"role": "Capital Markets Expert) CISI or an equivalent certification;", "qualification": "degree in Law", "experience_years": 10}, {"role": "PPP procurement, managing bidding process, resolving", "qualification": "degree in Engineering", "experience_years": 10}, {"role": "environmental impact assessments;", "registration_body": "NEMA"}]

[]