National Treasury reopens tender for High Grand Falls dam project

Kenya’s National Treasury has reopened procurement for transaction advisers for the proposed KSh337 billion Kibuka (High Grand) Falls Hydropower and Irrigation Dam Project, renewing plans to develop a major water storage and electricity generation facility along the Tana River.

The renewed procurement, announced on October 27, 2026, seeks consulting firms to advise the government on financing, structuring and implementing the project under a competitive public-private partnership (PPP) framework. A pre-bid meeting is scheduled for November 3, 2026, while proposals are due by November 24, 2026, at 11 a.m.

The proposed dam is located along the Tana River near the boundary of Tharaka-Nithi and Kitui counties. It is designed as a multipurpose infrastructure project intended to expand hydropower generation, support large-scale irrigation, improve water security and strengthen flood management.

Government planning documents indicate that the reservoir could store approximately 5.6 billion cubic metres of water and cover more than 165 square kilometres. The project’s initial hydropower design provides for 500 megawatts, with potential expansion to 700MW and eventually 1,000MW, subject to technical assessments and final investment arrangements.

The irrigation component is expected to support agricultural development across hundreds of thousands of acres. Different planning documents cite varying targets, ranging from approximately 400,000 to 500,000 acres, meaning the final irrigation area will need to be confirmed during project planning.

The planned reservoir is also expected to improve water availability for domestic and industrial use while helping regulate river flows during periods of heavy rainfall. If implemented, the project could support farmers who depend on rainfall, expand irrigated crop production and contribute to more predictable agricultural output.

The renewed tender follows the termination of an earlier development arrangement involving UK-based GBM Limited and its consortium partners in July 2025. The government ended the arrangement after determining that the project development report had not met several required conditions. The Treasury subsequently indicated that the project could be subjected to a fresh competitive procurement process.

The latest procurement is focused on securing professional advice rather than awarding a new construction contract. The selected transaction advisers are expected to assess the project’s commercial viability, recommend a suitable financing structure and help determine how construction, operational and financial risks should be allocated.

The government will also need to establish how the estimated KSh337 billion investment can be financed and how public and private capital could be mobilised. The project’s scale makes financing arrangements, environmental safeguards and long-term operational sustainability important considerations before construction can proceed.

The High Grand Falls Dam has been considered for decades as a major water and energy development opportunity on the Tana River. Its progress has, however, been affected by delays and changes in the proposed implementation arrangements.

The reopening of the advisory tender marks another step towards determining how the project can be delivered. Its eventual contribution to electricity generation, irrigation and water security will depend on the outcome of the procurement process, completion of the necessary assessments, financing approvals and the subsequent award of construction contracts.