Infrastructure

State Seeks Investors for Sh1.7tn Mega Dam Project

The project aims to provide water to six million households.

Updated on

June 6, 2023

A mega dam — 100 mega dams will be built across the country. PHOTO | FILE

Kenya has unveiled an enticing package of land incentives designed to unlock the much-needed financing for a massive dam project estimated to cost Sh1.7 trillion.

In a strategic move, the government is offering public land to investors to facilitate the construction of 100 mega dams on a Public Private Partnership (PPP) model.

The project seeks to address the country’s dire water scarcity challenges.

Water Cabinet Secretary Alice Wahome recently told prospective investors that they would be required to build dams with their own funds and sell water to State-owned water agencies to recoup their investments.

Ms. Wahome, however, disclosed that the land will not be sold to the private investors to ensure the project retains its status as a national scheme.

“The government will not be selling land as the land and the entire project will remain under the jurisdiction of the national government,” she said.

The deals with private investors will help the government to pursue capital-intensive water projects across the country without taking loans.

“Once the project is completed, it will be taken over by the national government. The government will implement this initiative through its Water Works Development Agencies, which will cover all nine regions of the country,” she added.

The project aims to provide water to six million homes and raise the acreage under irrigation to one million acres, while generating 554MW of hydropower.

Eventually, the State hopes to facilitate the construction of 100 large and 1,000 small dams countrywide in a bid to bring three million acres under irrigation.

“Our target is three million acres; we have a total of about 670,000 acres, which is not enough to give us the food security that we need,” Ms. Wahome said.

The government believes the PPPs will promote the adoption of innovative technologies and sustainable water management practices, including the application of efficient irrigation systems, rainwater harvesting and conservation.

“By adopting innovative financing models and optimising operational efficiency, the Ministry aims to ensure that water services are accessible and affordable to all Kenyan citizens,” the CS said.

In the past decade, the government has signed deals valued at more than Sh700 billion for construction of mega dams in various parts of the country.

At least five mega dams are already under construction at a cost of more than Sh156 billion. These projects were signed after Uhuru Kenyatta’s Jubilee administration took over leadership in 2013.