Treasury: No new tax incentives for PPP projects
The National Treasury has ruled out introducing new tax incentives for Public-Private Partnership (PPP) projects, saying investors should instead rely on existing tax concessions as the government seeks to reduce expenditure and improve returns from public investments. Treasury Principal Secretary Dr Chris Kiptoo said the government was reviewing tax incentives previously extended to different…
The National Treasury has dismissed plans to introduce new tax incentives for Public-Private Partnership (PPP) projects, urging investors to instead capitalize on existing tax concessions. Treasury Principal Secretary Dr. Chris Kiptoo stated that the government is striving to reduce expenditure and enhance returns from public investments.
In an interview on Tuesday, November 10, 2026, Kiptoo revealed that the government is examining tax breaks provided to various sectors due to their perceived ineffectiveness in delivering benefits to Kenyans. "We are in a tight fiscal space, so we are already looking at tax expenditures we have incurred in many sectors for which we don’t seem to be getting commensurate benefits to our people," Kiptoo elaborated.
He further explained that the government is reviewing previously granted incentives as part of efforts to lower tax expenditure. Despite halting new tax concessions, the government assures investors that they will continue to benefit from existing tax incentives under current laws. This decision follows Kenya's efforts to attract more private capital for infrastructure projects amidst limited resources in the national budget.
Public Investment and Asset Management Principal Secretary Cyrell Odede disclosed that the government currently allocates approximately 30% of its budget to development expenditure, which he deemed insufficient to fund the nation's development priorities. "We remain with 30% to finance our projects, which is not enough. Therefore, as a country, we reverted to public-private partnerships," Odede stated.
The 16th Africa Public Private Partnership Symposium, scheduled to take place in Nairobi, will convene stakeholders to discuss strategies for mobilizing private investment for infrastructure development. PPPs enable private investors to finance, develop, or operate public infrastructure projects through agreements with the government.
The model is increasingly viewed as a viable financing mechanism as Kenya seeks alternative ways to implement major development projects without further straining public borrowing and government revenue.
Written by urgent.news from People Daily Kenya's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
