Kenya and Tanzania’s latest discussions on Public-Private Partnerships (PPPs) signal interest in broadening the financing options for infrastructure development.  

On 11 November 2026, Kenya’s Cabinet Secretary for the National Treasury, John Mbadi, met Tanzania’s Minister for Works, Masanja Kungu Kadogosa, in Nairobi at the 16th Africa PPP Infrastructure Finance, Investment and Partnerships Summit. They discussed long-term infrastructure financing. Kadogosa outlined Tanzania’s reliance on road and railway levies and the need to diversify its financing sources. Mbadi shared Kenya’s experience with public-private partnerships (PPPs) and with institutional investor participation, including pension funds, and outlined the proposed Kenya National Infrastructure Fund. 

How the PPP Approach Works 

A public-private partnership (PPP) is a contractual arrangement in which a private-sector partner assumes agreed responsibilities and risks for delivering public infrastructure or services. Depending on the project, this may involve financing, construction, operation or maintenance, with the partner earning returns through user charges, government payments, or a combination of both. 

In Kenya, PPPs offer an opportunity to mobilise private capital and expertise to accelerate infrastructure development. However, they are not a cost-free alternative to public spending. The government must carefully assess project affordability, value for money, potential contingent liabilities, and the way risks are shared between public and private partners. Payment structures are particularly important, as government guarantees and long-term payment commitments can create significant fiscal obligations. 

Kenya’s Public Private Partnerships Act, 2021, provides the legal framework for these arrangements. Tanzania, meanwhile, operates under its Public Private Partnership Act, enacted in 2010 and amended in 2014, 2018 and 2023, with the consolidated legislation contained in Chapter 103. Although both countries are turning to PPPs to support infrastructure investment, they operate under separate legal and institutional frameworks. Cross-border coordination is therefore essential, as procedures and requirements in one country do not automatically apply in the other. 

A History of Cross-Border Cooperation 

Kenya and Tanzania have previously collaborated on regional road infrastructure, though these projects should not be confused with joint PPP financing. The East African Community records the 240-kilometre Arusha–Namanga–Athi River road, launched in 2012 to support trade, tourism and lower transport costs. It also records the 260-kilometre Arusha–Holili–Taveta–Voi Road, with the Kenyan section completed in 2017 and the Tanzanian components in 2019. The Holili–Taveta One-Stop Border Post is operational. 

These projects demonstrate an established foundation for cross-border infrastructure cooperation. However, the latest engagement places greater emphasis on sharing PPP experience and attracting private investment; no jointly financed road project has been announced. 

Potential Investment Opportunities for Kenya & Tanzania 

Roads are an immediate focus, given the meeting’s emphasis on road development. Tanzania’s Public-Private Partnership Centre lists the 78.9-kilometre Kibaha–Mlandizi–Chalinze Expressway among its PPP projects. Proposed as a toll road parallel to the existing Morogoro road, it is at the procurement stage. The Centre also identifies the Chalinze–Morogoro Expressway and the Igawa–Tunduma road in its project pipeline. 

These are Tanzanian pipeline projects, not the Kenya–Tanzania ventures announced. Nevertheless, they offer examples for discussions on tolling, concessions and risk allocation. At the regional level, the EAC identifies the Malindi–Lunga Lunga and Tanga–Bagamoyo road corridor as a cross-border project comprising road sections and bridges. Its coastal route serves areas with tourism and agricultural potential. 

What the Discussions Could Mean for Kenya’s Regional Infrastructure Agenda 

Better-connected roads can reduce travel times and vehicle operating costs, improve access to ports and markets, and support trade, tourism and investment. These benefits also depend on efficient border procedures, customs operations and logistics. 

For Kenya, the discussions could offer an opportunity to strengthen its role in regional infrastructure financing and to lay the groundwork for more structured EAC cooperation. This could take the form of joint project preparation, coordinated investor engagement or compatible financing arrangements. However, no bilateral PPP framework or specific joint project has yet been announced. 

Any cross-border ventures would require agreement on procurement, applicable laws, currency and revenue risks, land and environmental approvals, maintenance responsibilities, and cost and benefit sharing. 

The meeting marks an exploratory step towards sharing expertise and broadening infrastructure financing. Kenya’s experience with institutional investors and its proposed infrastructure fund may offer lessons for Tanzania, while Tanzania’s project pipeline provides concrete opportunities for technical exchange. Whether the engagement becomes a model for regional cooperation will depend on transparent project selection, credible feasibility studies, and contracts that protect public finances while delivering reliable services. 

Ultimately, the test for Kenya will be whether the discussions translate into bankable projects and practical regional financing arrangements.