The Kenyan government has decided to terminate a Ksh337 billion agreement with a private company for the construction of the High Grand Falls Project. This dam is located on the border of Kitui and Tharaka Nithi Counties.
The High Grand Falls project is aimed at boosting Kenya’s electricity generation capacity and agricultural irrigation. This would be achieved through the construction of an ultra-modern, large-scale multipurpose dam.
Also read: Ksh425 Billion High Grand Falls Dam Construction Project Development Agreement Signed
High Grand Falls Project Factsheet
Project name: High Grand Falls Multipurpose Reservoir
Location: it is located across the Tana River, at Kibuka Falls. This is near the border of Kitui and Tharaka-Nithi Counties.
Capacity: 693 – 700 MW
Cost: Approximately US$2.6 billion (Ksh337 billion)
Dam type: Gravity dam
Procurement of the Project
The multi-billion-shilling dam was to be procured through a privately initiated proposal by a United Kingdom-based infrastructure investment firm.
However, the National Treasury, in its Project Progress and Status Report that dates to July 5, 2025, has outlined that on July 2, of the present year, the government approved the termination of the project as per Section 43 of the PPP Act.
Also read: Construction of Africa’s second largest freshwater dam to be launched soon
Approval of the Project
The project proposal was initially approved in the month of May 2023. This allowed the project to proceed to a feasibility study. Subsequently, the feasibility study of the project was conducted. Eventually, the report of the feasibility study was submitted to the PPP Committee for approval.
Nonetheless, a review by the Committee of the project’s report concluded that the feasibility study did not meet most of the key requirements that are outlined in the PPP Act.
Also read: High Grand Falls Hydroelectric Power Station/High Grand Falls Dam in Kenya
As a result, the committee recommended its termination. Despite the termination, the Committee allowed the UK firm to make amendments to its feasibility study for resubmission.
Other Cancelled Projects
Other key projects that have been cancelled include the Ksh464 billion Nairobi–Mombasa expressway project. This project also known as the Usahihi Expressway was to be implemented in a partnership between the Kenya National Highways Authority and Everstrong Capital, a United States-based infrastructure firm.
In the review of the Usahihi Expressway, the PPP Committee directed the suspension of the project after the company failed to meet the criteria that was needed in its submission of the feasibility study report.
Also read: $3.6 Billion Usahihi Expressway, Africa’s Largest Toll Road Project Rejected
Approved Projects
Despite rejecting several privately initiated proposals, the Committee gave a green light for the construction of the 175-kilometre Nairobi–Nakuru highway.
In his recent announcement, Kenya’s President Ruto revealed that construction of the Nairobi-Nakuru highway would start in August this year and would be presided over by KeNHA.
Also read: Kenya’s 170-Kilometer Nakuru-Nairobi Highway Construction to Commence in July
