A prominent Kenyan lawmaker and former ally of President William Ruto has sharply criticized the government’s newly approved Sh5 trillion ($38 billion) National Infrastructure Fund, calling it a political gimmick aimed at wooing voters ahead of the 2027 elections.
Kiharu MP Ndindi Nyoro dismissed the fund as a ploy to entice voters, arguing that the administration should first account for nearly Sh4 trillion in debt accumulated since Ruto took office in 2022.
Nyoro, an economist who once chaired the National Assembly’s powerful Budget and Appropriations Committee, made the remarks to reporters in Nairobi on Sunday, a day before the Cabinet formally approved the fund.
Cabinet approves ambitious infrastructure vehicle
The Cabinet, chaired by Ruto at State House on Monday, approved the establishment of the National Infrastructure Fund as a limited liability company, alongside a Sovereign Wealth Fund.
The infrastructure fund is central to Ruto’s vision of mobilizing Sh5 trillion over the coming years to finance major projects in roads, energy, irrigation and transport corridors, without relying heavily on new borrowing or taxes.
Officials say proceeds from privatizing state-owned enterprises — such as stakes in Kenya Airways, KenGen and Kenya Pipeline Company — will be ring-fenced into the fund, potentially leveraging each shilling to attract up to Sh10 from private investors, pension funds and development partners.
Ruto first outlined the plan in his November State of the Nation address, framing it as key to transforming Kenya into a developed economy.
Nyoro questions debt accountability
Nyoro, who was removed from the budget committee leadership earlier this year amid tensions with the ruling party, said the government must explain how previous borrowings — pushing public debt beyond Sh11 trillion — have been spent.
He warned that off-budget mechanisms like the new fund could deepen Kenya’s debt burden without adequate parliamentary oversight, at a time when sectors like education face funding shortfalls.
Kenya’s public debt has risen sharply in recent years, drawing scrutiny from the International Monetary Fund over sustainability.
Political rift widens in ruling party
Nyoro’s criticism highlights deepening cracks within Ruto’s United Democratic Alliance party. Once viewed as a rising star in the president’s “hustler” movement, Nyoro has become one of the administration’s most outspoken internal detractors on fiscal matters.
The remarks come as Ruto faces fluctuating approval ratings following youth protests over taxes and cost-of-living pressures. Analysts say high-profile infrastructure pledges could help rebuild support in rural and urban constituencies before the 2027 vote.
Government officials defended the fund, insisting it will operate under transparent governance and attract reputable investors to deliver long-term growth and jobs.
The initiative is expected to spark heated debate when Parliament resumes, testing coalition unity amid Kenya’s ongoing economic challenges.
