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Infrastructure fund timely
President William Ruto and Deputy President Kithure Kindiki inspect the Kulamawe–Garbatulla section of the 750km Isiolo–Mandera Road under the Horn of Africa Gateway Development Project on February 11,2026.
Last year, President William Ruto announced the establishment of a National Infrastructure Fund, a bold step aimed at reducing Kenya’s dependence on public debt to finance development.
His argument was simple, Kenya has the resources to fund its own growth, what it lacks is a structured mechanism to mobilise and deploy that capital effectively. The urgency is undeniable.
As of December 2025, Kenya’s public debt stands at approximately Sh12.3 trillion. In the 2024/25 financial year, 71.2 per cent of government revenue went toward debt servicing.
Yet, Kenya requires over $12 billion annually in infrastructure investment through 2040 to meet its development goals. With a financing gap of roughly $2.1 billion each year, the current model, largely dependent on borrowing, is no longer sustainable.
The government expects the fund to unlock billions in long-term capital, crowd in private sector participation and deliver infrastructure more efficiently. If executed properly, it could catalyse large-scale projects without adding pressure to public debt and shorten project timelines, among other benefits.
Social infrastructure
While the focus is on roads, ports and energy, the fund must not overlook social infrastructure, particularly healthcare and education. Investment in healthcare infrastructure reduces outbound medical tourism, retains billions within the economy and improves national productivity.
Similarly, investment in education and research ensures that Kenya’s young population becomes an economic asset. If the fund integrates social infrastructure into its core investment framework, it will not just build assets, it will build a resilient, productive society.
All said, the success of the fund will ultimately depend on governance. It must operate as a commercial, professionally managed institution. Capital allocation must be guided by, bankability and financial sustainability, economic and social impact, and long-term national interest. It must not become a political tool for short-term gains.
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The writer is Executive Director & CEO of Luton Medical Hospital.
