Tanzania and Kenya have explored opportunities for strengthening Public-Private Partnerships (PPP) in financing and implementing infrastructure projects, particularly road development, as part of efforts to accelerate investment in the sector.
The discussions took place when Minister for Works, Masanja Kadogosa, met Kenya’s Cabinet Secretary for the National Treasury, FCPA John Mbadi, in Nairobi, Kenya.
The two leaders discussed ways of enhancing the use of PPP arrangements in road projects, focusing on investment opportunities, financing mechanisms and collaboration between the public and private sectors in infrastructure development.
They also exchanged experiences and best practices in preparing, financing and managing major development projects, including payment models for infrastructure services to ensure their efficiency and long-term sustainability.
The discussions are expected to strengthen cooperation and knowledge sharing between the two countries in mobilising resources and attracting private sector investment towards major infrastructure projects.
The meeting was attended by Permanent Secretary for Public Investment and Government Asset Management, Cyrell Wagunda, alongside officials from Kenya’s Public-Private Partnerships Directorate, led by Director General Engineer Kefa Seda.
Kadogosa and his delegation are in Kenya to attend the 16th Africa PPP Conference on Infrastructure Financing, Investment and Partnerships (Africa PPP 2026), taking place in Nairobi.
The conference brings together development stakeholders, investors and financial institutions to discuss opportunities and strategies for increasing investment in infrastructure projects across Africa.
The push for PPP financing comes amid growing pressure on East African governments to bridge infrastructure funding gaps while maintaining fiscal discipline. Traditional public financing has struggled to keep pace with the region’s road network demands, prompting both countries to look toward private capital as a complementary source of investment.
For Tanzania, the engagement with Kenya signals a broader strategy to learn from its northern neighbour’s more established PPP framework. Kenya has over the years developed a relatively robust legal and institutional architecture for public-private partnerships, including a dedicated directorate within the National Treasury that oversees project preparation, procurement and monitoring.
Analysts note that road infrastructure remains a critical enabler of trade and integration within the East African Community. Improved highway connectivity between Tanzania and Kenya — including key corridors linking the port of Dar es Salaam to landlocked neighbours — could significantly reduce transport costs and boost intra-regional commerce.
The discussions on payment models for infrastructure services are particularly significant. Many African governments have faced challenges with availability payments and user-fee structures that can strain public budgets or deter private investors if not properly designed. Sharing experiences on these mechanisms could help both countries avoid costly pitfalls.
The Africa PPP 2026 conference provides a wider platform for Tanzania and Kenya to engage with development finance institutions, multilateral lenders and private equity investors active in African infrastructure. Such forums have increasingly become venues where pipeline projects are showcased and financing partnerships are forged.
Officials from both delegations expressed optimism that the Nairobi meeting would translate into concrete cooperation, including potential joint approaches to attracting investors for cross-border road projects. The two countries share several strategic corridors, and coordinated PPP planning could enhance the bankability of projects that might struggle to attract financing individually.
The meeting underscores a growing recognition across East Africa that infrastructure development requires innovative financing models beyond traditional government budgets. As debt sustainability concerns limit borrowing capacity, PPPs offer an alternative route to mobilising capital while transferring certain risks to the private sector.
Tanzania’s participation in the conference also reflects its broader infrastructure ambitions under its national development plans, which prioritise transport connectivity as a foundation for industrialisation and trade competitiveness. Kenya similarly views road infrastructure as central to its economic transformation agenda.
