The National Treasury has announced plans to revive construction of the proposed Kibuka Falls hydropower and irrigation dam project more than a year after terminating the Ksh337 billion deal.
In a notice on Tuesday, October 27, the Treasury readvertised its earlier tender, seeking transaction advisory services for the proposed multibillion-dollar project under the Public-Private Partnership (PPP) framework.
According to the notice, the government is seeking a professional firm to advise it on how to structure and advance the proposed dam project intended to support electricity generation and irrigation.
"The National Treasury (the Client), invites proposals to provide consulting services for Transaction advisory services for the Kibuka (High Grand) Falls hydropower and irrigation dam project," the notice read in part.
An image of the Treasury Cabinet Secretary John Mbadi, speaking during a KRA meeting mid 2025.
Photo
KRA
The firm will determine how the project should be developed, financed and implemented under the new PPP framework.
The latest development indicates that the government has revived the construction of the project after terminating an earlier deal worth over Ksh337 billion with a private company.
According to the Treasury, the cancellation of the contract by the UK-based firm in July 2025 was to safeguard the interests of the public and review its legal compliance, according to the National Treasury Project Progress and Status Report dated July 5, 2025.
The multipurpose infrastructure development, located along the Tana River and within Tharaka-Nithi and Kitui counties, is designed to generate 700 MW of hydroelectric power.
The project also aims to irrigate approximately 500,000 acres of land and store over 5.6 billion cubic metres of water to aid flood control, domestic supply, and regional development.
In March and April 2026, the government officially revived the venture under a new PPP framework, giving hope for the construction of the project.
In the latest notice, firms will be evaluated on the quality of their technical proposals and their financial proposals, according to the tender rules.
Consulting firms may also be allowed to team up, subject to the conditions in the tender document.
The ministry has therefore set November 3, 2026, for the pre-bidding meeting, while official bids are to be submitted on or before November 24 at 11 am.
The Request for Proposals (RFP) must be prepared and completed using the official forms provided by the ministry, with the forms available on the E-GP platform.
Treasury Cabinet Secretary John Mbadi briefing the media at the National Treasury Building on Thursday, December 18, 2025
National Treasury