The Kenyan government, under President William Ruto’s leadership, has officially cancelled a Ksh337 billion contract with an international company for the development of the High Grand Falls Dam.
This ambitious infrastructure project was planned for the border region between Kitui and Tharaka Nithi Counties and was expected to significantly enhance the country’s electricity supply and agricultural irrigation systems.
The project, which was to be implemented through a Privately Initiated Investment Proposal (PIIP) by a UK-based infrastructure investment firm, has now been terminated, according to the National Treasury’s latest Project Progress and Status Report released on July 5, 2025.
The decision to terminate the contract was made on July 2, in line with Section 43 of the Public Private Partnership (PPP) Act.
Why the Deal Was Cancelled
Initially greenlit in May 2023 to proceed to the feasibility stage, the project underwent an in-depth evaluation. The PPP Committee reviewed the feasibility study submitted by the firm and concluded that it fell short of key requirements outlined in the PPP Act.
As a result, the Committee recommended the termination of the proposal, citing non-compliance. However, in a show of good faith, the Committee granted the UK firm an opportunity to revise and resubmit its feasibility report for fresh evaluation at a later date.
“The project failed to meet the legal and technical thresholds during the feasibility phase. The investor may submit a revised proposal for future consideration,” the Treasury report stated.
Other Major Projects Also Cancelled
The termination of the High Grand Falls Dam contract follows the recent cancellation of another major PPP project—the Ksh464 billion Nairobi–Mombasa Expressway, which was to be executed by Everstrong Capital, a US-based infrastructure investor.
Like the Grand Falls project, the expressway proposal was also terminated after the PPP Committee reviewed the feasibility documents and found that it did not meet the minimum criteria required for approval. The committee invoked the same Section 43 of the PPP Act to halt the project.
“The expressway plan did not meet the standards required and was therefore shelved. However, the door remains open for a revised submission for re-evaluation,” the report added.
Projects That Got the Green Light
Despite rejecting multiple mega projects, the PPP Committee has approved the construction of the Nairobi–Nakuru Highway, a 175-kilometre road project that is expected to begin in August 2025. President Ruto recently confirmed that the Kenya National Highways Authority (KeNHA) will oversee the project.
This highway is part of the government’s broader efforts to strengthen infrastructure, improve connectivity, and stimulate economic activity in key transport corridors.
Conclusion
The termination of the Ksh337 billion High Grand Falls Dam and other major infrastructure projects highlights the government’s push for greater transparency, accountability, and feasibility in handling public-private partnerships.
While these cancellations may delay some developments, they also reflect a move toward ensuring that only well-vetted, legally compliant, and economically viable projects are approved going forward.
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