The government has introduced a strict new 10-point evaluation system for investors seeking to acquire or lease public land for commercial projects, Special Economic Zones (SEZs) and Export Processing Zones (EPZs), in a move aimed at protecting public assets and ensuring every deal delivers real economic value.
In Circular No. 09/2025, Treasury Cabinet Secretary John Mbadi directed all ministries, departments and agencies (MDAs) to apply a weighted scoring matrix before approving any lease of government land. The Treasury said the new framework will end ad-hoc arrangements and ensure that public land supports job creation, export growth and industrial development.
The Treasury described public land as a “strategic asset critical to Kenya’s industrial development agenda”, warning that poorly structured leases could expose taxpayers to major financial and legal risks.
The reforms come as President William Ruto’s administration intensifies efforts to attract private investment to expand manufacturing, increase exports and create employment through export-led growth.
How the new investor scoring system works
Under the new rules, government agencies must evaluate every prospective investor against 10 key criteria, each assigned a specific weight. Officials will score applicants on a scale of one to five for each category, then calculate a final weighted score to determine eligibility.
The most heavily weighted areas are financial strength and investment capacity, which carry 15 per cent, and job creation and export potential, which also carry 15 per cent. In these categories, investors must demonstrate strong capitalisation, a credible track record and the ability to create sustainable employment.
“Investments should contribute significantly to employment creation and human capital development,” the circular states.
The framework also evaluates alignment with national development strategies such as Vision 2030 and the Bottom-Up Economic Transformation Agenda (BETA), which account for 10 per cent. Innovation and technology, sustainability and environmental responsibility, and long-term commitment each also carry a 10 per cent weighting.
Authorities will also assess social impact and integration with local supply chains to ensure that approved projects deliver broad-based economic benefits beyond the immediate investor.
An investor who scores above 4.0 will qualify as “Highly Suitable,” while the government will automatically reject any applicant who scores below 3.0.
Tighter rules on using public land as collateral
In one of the most far-reaching changes, the Treasury has tightened controls on how investors can use government-leased land as collateral for loans, a practice that has raised concerns about the possible loss of public assets.
The circular makes it clear that any investor seeking to use leased land outside SEZs or EPZs to secure financing must obtain approval from both the relevant ministry’s board and the Cabinet Secretary.
“Any land outside SEZ/EPZ will require approval of the Board and the line Ministry Cabinet Secretary to authorise government-leased land to be used as collateral for purposes of raising capital by private parties,” the memo states.
The Treasury said the new safeguards will strengthen oversight, prevent abuse of public land and ensure that all government-backed investments align with Kenya’s long-term industrial and economic priorities.
By enforcing the 10-point scoring system, the government aims to attract serious investors while protecting public land from speculative or high-risk deals that fail to deliver tangible benefits to the country.
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