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What new Bill on Infrastructure Fund says as State inches closer to Sh5trn dream
Treasury Cabinet Secretary John Mbadi speaks during treasury market update in Nairobi on December 4, 2025.
Kenya has inched closer to establishing the National Infrastructure Fund after tabling a Bill in Parliament that provides the legal framework for the kitty, including its governance and investment policy.
The Leader of Majority Kimani Ichung’wah has tabled in the National Assembly the National Infrastructure Fund Bill, 2026, which also outlines the governance structure of the kitty, whose seed capital will be proceeds from the privatisation of State entities and disposal of government assets.
Through the fund, President William Ruto’s government wants to mobilise up to Sh5 trillion by crowding in private capital by leveraging up to Sh10 for every shilling invested.
The Cabinet Secretary for National Treasury, or their representative, shall be part of the nine-member board, which shall also include the chairperson, four independent directors, two directors with proven experience in development banking, and the Chief Executive Officer.
It is this board that will be responsible for the Fund’s key role of mobilising resources for the Fund by developing an investment policy to be approved by the CS for the National Treasury.
“The Board shall, prior to the commencement of a financial year, adopt an investment plan based on the national strategic objectives,” reads part of the Bill, noting that the investment plan shall be effective on the first day of the financial year, which shall be July 1.
“The investment plan shall form the basis of annual performance contracts to be signed between the Cabinet Secretary and the Fund,” reads the Bill.
President Ruto, who is seeking to be re-elected in next year’s General Election, is running on the promise of elevating the nation to first-world status, emulating the rapid industrialisation of Asian economies such as Singapore.
The Government has indicated that proceeds from the ongoing initial public offering (IPO) of Kenya Pipeline Company and partial sale of its stake in Safaricom will form part of the Fund’s seed capital.
The State expects to raise Sh106 billion from the Kenya Pipeline IPO and around Sh244.5 billion from selling a 15 percent stake in Safaricom to the South African firm Vodacom Group.
The Cabinet Secretary shall also be responsible for performance evaluation of the Fund and, for purposes of performance evaluation, may co-opt relevant external experts that may include those from relevant Ministries.
“The performance evaluation of the Fund under subsection (1) may be based on audited financial statements and any other parameters as the Cabinet Secretary may determine,” reads the Bill, which also expects the CS in charge of finance to come up with regulations to operationalise some sections of the proposed law.
In the Bill, the Government may also offer some support to the Fund in the form of letters of credit and letters of credit for political risks and underwriting approved commercial risks.
The Fund can invest surplus funds in Government securities.
The Chief Executive Officer, who will be hired by the Board, shall hold office for a term of four years and shall be eligible for reappointment for one further term.
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