President William Ruto has signed the National Infrastructure Fund Bill into law, describing it as a turning point in how Kenya will finance major development projects.
Speaking during the signing ceremony at State House Nairobi, Ruto said the new law will enable the country to mobilise long-term domestic capital to fund critical infrastructure such as roads, railways, ports, power systems, housing and irrigation.
“Years from now, we will look back on this day as a turning point in the journey of our nation’s transformation,” the President said. “Today, I have signed into law the National Infrastructure Fund.”
The fund is designed to bridge Kenya’s infrastructure financing gap while reducing reliance on expensive external borrowing.
Ruto said Africa faces an annual infrastructure financing gap of up to $80 billion, while Kenya alone requires about $4 billion every year to meet its infrastructure needs.
“The scale of the challenge before us demands a new approach,” the President said.
The National Infrastructure Fund will mobilise long-term savings from domestic investors, including pension funds and other institutional investors, to finance large-scale infrastructure projects.
According to the President, pension assets in Kenya grew by Sh700 billion in the past year, bringing total savings to about Sh2.81 trillion, demonstrating the potential of domestic capital to support development.
“The National Infrastructure Fund provides a mechanism to channel these long-term savings directly into infrastructure investment,” he said.
Ruto announced that the expansion of Jomo Kenyatta International Airport will be the first major project financed under the new model.
The project will include about Sh20 billion in equity participation from the National Infrastructure Fund and domestic institutional investors.
The government has already begun capitalising the fund through the initial public offering of Kenya Pipeline Company, which raised Sh106 billion that will be used to support infrastructure investments.
The President said the government intends to leverage the capital to mobilise up to Sh1.2 trillion in infrastructure financing, with a long-term target of generating nearly Sh5 trillion in investment over the next decade.
Ruto said the law also includes governance safeguards to ensure transparency and accountability, including the establishment of a governing council, a professional board and parliamentary oversight of the fund’s investment policy.
The framework is also aligned with the Government-Owned Enterprises Act, which provides a new governance structure for state corporations such as the Kenya Airports Authority, Kenya Ports Authority, Kenya Railways, Kenya Electricity Transmission Company, Geothermal Development Company and the National Cereals and Produce Board.
Ruto said the infrastructure fund model has been successfully implemented in several countries including Nigeria, Ghana, India, Canada, the United Kingdom and South Africa, adding that Kenya drew lessons from these experiences when designing the framework.
He said the initiative will support large-scale investments in transport, energy, irrigation and logistics infrastructure needed to support agriculture, manufacturing and economic growth.
“Today’s moment represents more than the creation of a fund,” the President said. “It represents a new chapter in how Kenya finances its future.”
Read: Ruto Pushes PPP Vehicle Inspection, Demands Instant Traffic Fines Within 30 Days
>>> Governance Debate Intensifies Over Proposed Kenya National Infrastructure Fund
Leave a comment