Kenya’s Cabinet approved the creation of a National Infrastructure Fund on Monday, structuring it as a limited liability company to finance major projects using proceeds from privatizing state assets instead of taking on more debt.
President William Ruto chaired the special meeting at State House. A government dispatch described the fund as the primary mechanism for directing privatization revenues exclusively to public infrastructure development.
The move is intended to ease Kenya’s heavy debt load by avoiding new borrowing and higher taxes.
In the same session, the Cabinet endorsed a national Sovereign Wealth Fund policy that sets guidelines for investing income from minerals and petroleum, dividends from state investments and a portion of privatization earnings.
Both funds are key elements of Ruto’s 5 trillion Kenyan shilling (about $38 billion) roadmap to transform Kenya into a developed economy.
Shift from debt-financed growth
The approvals come as Kenya seeks sustainable ways to fund roads, power plants and other large projects.
The government has targeted several underperforming state corporations for privatization. The planned sale of the Kenya Pipeline Company is projected to generate around 100 billion shillings, all of which will now be earmarked for the new infrastructure fund.
Ruto previewed the decision Sunday during a church service in Gatundu North, Kiambu County, calling it the official start of his administration’s drive to make Kenya a “First World” country.
“We will have a special Cabinet sitting tomorrow that will approve a 5 trillion shilling Infrastructure Fund to move our development projects forward,” he told worshippers.
The president said the fund would accelerate delivery of ongoing works and new initiatives promised in his 2022 campaign.
He rejected suggestions that the timing was politically motivated ahead of the 2027 elections.
“If it was about votes, you elected me in 2022 — that is enough for me to deliver,” Ruto said. “Elections will come later. It is time to work, and when that time comes, people should be judged by what they have done.”
Sovereign wealth policy approved
The Sovereign Wealth Fund policy provides a framework for prudent management of resource revenues, aligning Kenya with practices in other mineral-producing countries.
While Kenya’s extractive industries are still developing, the policy also covers dividends from government holdings in profitable enterprises.
Political tensions surface in Kiambu
Ruto’s Sunday visit to Kiambu County highlighted local political rivalries.
Drama erupted when Thika Town MP Alice Ng’ang’a announced her plan to run for Kiambu governor in 2027.
Gatundu North MP Elijah Kururia then called her the “incoming governor,” prompting an angry interruption from incumbent Gov. Kimani Wamatangi.
“I am the sitting governor and the governor-to-be,” Wamatangi declared. “If there was any doubt, now you know who the incoming governor is.”
Ruto intervened to calm the situation, reminding leaders of an earlier agreement to postpone electioneering until closer to 2027.
The exchange underscored ongoing friction between Wamatangi and several Kiambu lawmakers close to the president, including National Assembly Majority Leader Kimani Ichung’wah, one of Ruto’s key allies.
Similar tensions have appeared at previous public events. In September, Wamatangi received a cool reception at a funeral attended by the president. Three months ago, he was notably absent from a State House meeting with Kiambu legislators and opinion leaders.
Wamatangi has accused some lawmakers of working with influential government figures to undermine his administration.
As Ruto pushes a national development agenda, these county-level rivalries illustrate the difficulty of keeping political alliances united with elections on the horizon.
The Cabinet’s decisions mark a clear intent to pursue self-funded growth, though success will hinge on effective privatization and transparent management of the new funds.
