New Setback for Kenya’s Sh337bn High Grand Falls Dam

Plans for the long-delayed High Grand Falls Dam along the Tana River have hit another setback after the National Treasury terminated the project in July, citing unspecified regulatory shortcomings in the Project Development Report. 

The Sh337 billion initiative, intended to generate hydroelectric power, provide irrigation, manage floods, and supply drinking water, now faces further uncertainty.

The UK-based GBM Engineering Consortium, which won the tender to finance, design, build, operate, and transfer the dam under a 30-year concession, had invested close to Sh130 billion in feasibility studies and preparatory work over several years. 

In a petition to the Public Private Partnership (PPP) Committee, the firm indicated that the termination could trigger additional compensation claims.

Energy Principal Secretary Alex Wachira said the government is preparing a fresh plan for the project. “I will be calling a meeting with the energy regulator, KPLC, and KenGen to develop a framework for how we are going to implement the High Grand Falls Dam. This meeting will take place within the next two weeks,” he stated.

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Originally envisioned in the 1950s, the High Grand Falls Dam is planned to span more than 165 square kilometres and hold up to 5.6 billion cubic metres of water. 

Its hydropower capacity is expected to start at 500 megawatts, with future expansion to 1,000 megawatts, significantly strengthening Kenya’s national electricity supply.

GBM had initially partnered with Power China, builders of China’s Three Gorges Dam, and RCP Irrigation of Portugal to implement the hydro, solar, and irrigation components. 

The consortium’s model involves designing, funding, and operating the project to recoup its investment over three decades before transferring ownership to the Kenyan government.

The PPP Directorate approved the termination on July 2, 2025 but noted that the National Irrigation Authority (NIA), the contracting body, could invite new bids to revive the project. 

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Tendering for the dam dates back to 2010, with GBM prevailing over several international firms, including major Chinese companies. 

Phase one of the dam was expected to be operational by 2031, with a capacity of 495 MW at an estimated cost of Sh250 billion. Phase two, with 198 MW, was expected a year later, bringing the total capacity to 693 MW. 

Funding was to come entirely from the contractor under the build-operate-transfer (BOT) model, with the government expected to take ownership after 30 years.

Once completed, the High Grand Falls Dam would have been Africa’s third-largest, after Egypt’s Aswan High Dam on the Nile, which spans 5,250 square kilometres, and the recently completed Grand Ethiopian Renaissance Dam, which covers 1,875 square kilometres.

The project was part of an ambitious national plan to build 1,000 mega-dams to transform irrigation-based agriculture.

Other dams include Twake Dam in Makueni, which will nourish Konza City, Badasa Dam (Marsabit), Hare Dam (Nyando), Sio Dam (West Pokot) and Mwache Dam in Kwale.

In 2014, the government said it had finalised procurement with the China State Construction Engineering Corp to build the High Grand Falls Dam at Sh189 billion.

The project was to be funded through a public-private partnership (PPP) model, with firms from China and the Export-Import Bank of China providing the finances.

Months later, Kenya decided to tender the project afresh under the build-operate-transfer model that does not require it to procure any funding for the project.

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