The Cabinet has approved the creation of two powerful financial instruments; the National
Infrastructure Fund and the Sovereign Wealth Fund, that are designed to reshape the nation’s
economic future.
In accordance to the current administration, the ambitious move marks a critical
step in implementing a bold long-term plan aimed at propelling the nation toward first-world
economic status.
The Sh5 trillion roadmap that was just given the green light will see the National Infrastructure Fund
being established as a limited liability company. It will serve as the central engine aligning the
government’s financial resources with national development priorities.
Moving beyond traditional reliance on borrowing and taxation, the Fund will unlock large-scale
private capital through innovative means. These include the strategic mobilization of domestic
resources, the monetization of mature public assets, and inviting public participation through capital
markets.
Crucially, the framework ensures that all future privatization proceeds will be ring-fenced strictly for
public infrastructure projects that generate enduring value. The government envisions a powerful
multiplier effect, where every shilling invested through this Fund is expected to attract up to ten
additional shillings from long-term investors like pension funds, private equity, and development
finance institutions.
Alongside it, the Sovereign Wealth Fund Policy, creates a robust framework for managing future
national wealth. This fund will act as a collective savings vehicle, pooling revenues from mineral and
petroleum resources, dividends from public investments, and a share of privatisation income.
The fund is built on the three core principles; to ensure inter-generational savings for future
Kenyans, to act as a buffer against external economic shocks, and to make strategic investments that
yield commercial returns.
In doing so, it not only strengthens fiscal discipline and national resilience but also operationalises
the constitutional principle of inter-generational equity and advances the administration’s
investment-led growth agenda. Together, these twin funds represent a synergistic financial force
dedicated to financing Kenya’s broad transformation.
They will focus on strengthening national food security to position the nation as a net exporter,
expanding modern transport and logistics networks to drive productivity and trade, and scaling up
energy generation to power industrialization and the digital economy.
