The Government of Kenya has initiated a comprehensive plan to revive the Kibuka High Grand Falls Hydropower and Irrigation Dam Project on the Tana River through a Public-Private Partnership (PPP) framework.
The project, with 700MW of hydropower and 500,000 acres of irrigation, aims to address the nation’s long-term energy needs and food security.
In March 2026, the National Treasury issued a Request for Proposals (RFP) to engage a Transaction Advisor (TA) to guide the project through a PPP framework, signaling a shift in procurement.
Revival of the Tana River project comes after its termination by the National Treasury in 2025, citing the protection of public interests and legal compliance.
“The National Treasury affirms that the decision to terminate the High Grand Falls Dam Project under the PPP framework was lawful, transparent, and fully in line with the PPP Act. We assure the public that the Treasury remains committed to delivering infrastructure projects that are viable, sustainable, and beneficial to Kenyan,” Cabinet Secretary for the National Treasury and Economic Planning, John Mbadi, stated.
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Tana River Dam Project
The Kibuka project has a reservoir with a storage capacity of approximately 5.6 billion cubic meters of water, intended to regulate the Tana River’s flow and provide a buffer against floods and droughts, according to the government.
In addition, the project’s physical outputs are split into hydropower and irrigation to serve the counties of Tharaka, Kitui, Garissa, and Tana River counties.
Further, the government will enhance the revenue streams through aquaculture, reservoir-based eco-tourism, agro-processing industrial parks, and potential carbon credits through climate finance mechanisms.
Previously, the Kibuka project was considered under the Privately Initiated Proposal (PIP) administration by the GBM consortium.
However, following a detailed evaluation of the Project Development Report (PDR), the PPP Committee formally approved the termination of the arrangement on July 2, 2025.
Termination of the PIP by the committee was due to the developer’s failure to meet key statutory requirements set out in Section 43 of the PPP Act.
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Government Implementation of the Project
The government has set a structured timeline for the revival of the project, with a duration from the commencement of advisory services to financial close estimated at 20 calendar months.
Phase I is expected to take place in eight months, while the subsequent procurement and negotiation phase is slated for another 12 months, according to the government.
Additionally, the project is set to involve land acquisition and the resettlement of Project Affected Persons (PAPs) due to the scale of the Tana River dam and the need for environmental and social safeguards.
Preparation of the full Resettlement Action Plan (RAP) and a preliminary Environmental and Social Impact Assessment (ESIA) for the project’s risk allocation, to be completed before the selection of the private concessionaire, will be handled by the Transaction Advisor.
