Kenya’s President William Ruto has signed into law the National Infrastructure Fund bill, 2026, establishing a KSh5 trillion fund aimed at transforming the country’s approach to financing large-scale development projects.
The ceremony took place at State House, Nairobi, with private sector leaders and senior government officials in attendance, including National Assembly Speaker Moses Wetang’ula and Treasury Cabinet Secretary John Mbadi.
Lawmakers in the National Assembly passed the legislation on 6 March after several weeks of debate and important amendments focused on improving governance and oversight mechanisms.
During the signing event, President Ruto explained that the Kenya Pipeline Company initial public offering will raise the initial resources for the fund.
“Our goal is to leverage this capital at least two times what we will get from the Kenya Pipeline IPO. Over time, this model will enable Kenya to mobilise about KSh5 trillion,” the president said.
He stressed that the National Infrastructure Fund will operate with the highest standards of professionalism.
“I want to assure that the National Infrastructure Fund and other commercially viable agencies will be run on the same principles as the private sector, if not higher. It will not be run by people with political connections or failed politicians but by people subjected to competitive recruitment,” Ruto added.
The president noted that Kenya is following the example of successful infrastructure funds in countries such as India, Nigeria, Ghana and South Africa.
The National Infrastructure Fund will mobilise resources for critical sectors including transport, energy, water, irrigation and digital connectivity. Projects expected to benefit include the construction and upgrading of highways, railways, ports and agribusiness infrastructure.
Ruto said the fund will help the government prioritise important projects and package them as attractive investment opportunities.
“The Fund will help us prioritise what is important to us; package them into investable instruments,” he said.
Unlike previous approaches that relied heavily on government borrowing, the new fund introduces an investment-led model that will attract participation from both the public and private sectors. This is expected to ease the burden on the national budget and reduce debt accumulation while accelerating infrastructure development across the country.
The bill faced some opposition during debate, with concerns raised about potential excessive executive influence, particularly the role of the Treasury Cabinet Secretary. In response, members of parliament introduced several amendments to strengthen transparency and parliamentary oversight.
The law creates a Governing Council chaired by the Treasury Cabinet Secretary. The council includes the Central Bank Governor, the Attorney-General and six independent members appointed by the President to serve three-year terms.
While the Governing Council will provide strategic direction and protect the fund’s assets, it will not interfere in the day-to-day operations of the board. This structure is intended to maintain the independence of management.
The board of directors will consist of professionals recruited competitively. Members are required to have a minimum of ten years of experience in fields such as finance, law or engineering. Four of the directors will be independent.
The Chief Executive Officer will serve as the administrator of the fund. In addition, the Treasury Cabinet Secretary is required to present the fund’s Investment Policy Statement to the National Assembly for approval within 90 days. Parliament will have the power to approve, amend or reject the policy.
To discourage any misuse of resources, the law prescribes tough penalties. Anyone found misappropriating funds from the National Infrastructure Fund must repay twice the amount stolen, face a minimum fine of KSh10 million or serve at least five years in prison.
The legislation clearly defines national infrastructure to include national highways, railway networks, airports, seaports and electricity generation, transmission and distribution systems.
National Assembly Majority Leader Kimani Ichung’wah, the sponsor of the bill, described the legislation as highly significant for the country’s future.
He told the House that the National Infrastructure Fund bill ranks among the most important pieces of legislation since the 1965 Sessional Paper No.10 that was championed by former minister Tom Mboya.
Ichung’wah said the fund will help realise President Ruto vision of modernising Kenya’s infrastructure and moving the country towards upper middle income status.
With the National Infrastructure Fund now operational, Kenya aims to shift from debt-driven infrastructure development to a more sustainable model anchored on investment and commercial viability. The successful implementation of this law is expected to unlock significant resources and expertise from the private sector.
