MBADI SETS RECORD STRAIGHT ON KENYA LOSING KSH 315 BILLION OVER FLOPPED PROJECT

The National Treasury has dismissed reports that Kenya could lose up to Ksh317 billion following the termination of the High Grand Falls Dam Project, stating that no binding financial obligation exists between the government and the project’s private proponents.
In a detailed statement issued on Wednesday, 24 September 2025, Treasury Cabinet Secretary John Mbadi clarified that the cancellation of the project under the Public-Private Partnership (PPP) framework was lawful, transparent, and fully consistent with the provisions of the PPP Act.
The statement followed media reports alleging that the government faced massive financial losses due to the project’s termination.
The Treasury trashed reports suggesting that taxpayers would bear losses amounting to Ksh317 billion, stressing that no binding financial agreements had been signed.
“Under the Public Private Partnerships framework, no obligation arises until a binding PPP Project Agreement approved by the PPP Committee is signed by project parties,” the statement read.
The Treasury emphasized that, since no Project Agreement had been signed, there was no legal or financial liability on the part of the government, dismissing the reported figure as inaccurate and misleading.