Portuguese Firm Battling Auctioneers Picked for Embu Dam

A Portuguese construction company facing auction threats from creditors has been conditionally selected for the Thuci Dam project in Embu. The development marks another step for the long-stalled initiative.

The Public Private Partnership Directorate reviewed the unsolicited proposal from Elevolution Engenharia, SA. The State Department for Irrigation gave conditional approval in January 2026. Several requirements must still be met.

Elevolution serves as the main construction arm of Portugal’s Elevo Group. The group accumulated heavy debt exceeding €350 million. Restructuring followed insolvency pressures from banks, suppliers and authorities.

Portuguese courts saw enforcement actions. Banco Comercial Português sought to auction shares and bonds to recover loans. These domestic troubles contrast with the firm’s international ambitions.

Principal Secretary Ephantus Kimotho outlined the conditions. The company needs audited financial statements from a reputable firm. It must also demonstrate equity commitment for the project.

Earlier estimates pegged the dam cost at Sh705 million. Final figures will emerge during detailed negotiations. The facility aims to irrigate thousands of acres while supplying water and generating power.

Additional plans include agro-processing and tourism elements. The PPP model shifts financing burden to the private partner. Recovery occurs through user charges over the concession period.

The project has faced repeated delays. It featured prominently in local politics. Residents hope for tangible progress on water and agricultural transformation

Kenya’s privately initiated proposals face growing examination. Recent high-profile cases highlighted risks with financially strained bidders. The government insists on rigorous vetting.

Kimotho emphasised the conditional nature. Full approval depends on proof of capacity. The department wants assurance against delivery failures.

Thuci Dam fits broader irrigation goals. Expanded storage supports food security amid climate challenges. Success could encourage similar partnerships elsewhere.

Creditor issues may affect financing arrangements. The firm must navigate both Portuguese proceedings and Kenyan requirements. Stakeholders will monitor how the project advances.