Mbadi Hails New Infrastructure Fund as Game Changer for Kenya’s Economy

Treasury Cabinet Secretary John Mbadi has welcomed the creation of the National Infrastructure Fund, saying it will help Kenya finance major development projects while easing pressure on public debt.

In a statement, Mbadi said the new investment vehicle would introduce a different approach to funding infrastructure by attracting both public and private capital.

“The passage of the Infrastructure Fund Bill 2026 in the National Assembly that paves the way for the creation of the first-of-a-kind Investment Fund in Kenya is not only a game-changer in unlocking Kenya’s economic potential by accelerating growth but will also ease debt pressure. Let’s join hands,” Mbadi said.

The fund, to be known as the National Infrastructure Fund (NIF), is expected to mobilise resources for large national projects across sectors such as transport, energy, water, irrigation and digital connectivity.

Unlike previous infrastructure programmes that relied heavily on government borrowing, the fund will draw financing from multiple sources, including private investors, development partners and proceeds from the sale of government stakes in state-owned companies.

The initiative comes days after the government announced an Initial Public Offering (IPO) of shares in Kenya Pipeline Company at the Nairobi Securities Exchange.

Under the offer, the government released 1.8 billion shares priced at Ksh 9 each as part of a broader plan to divest part of its stake in the company and raise funds for development.

According to the Treasury, the offer attracted applications for 12.49 billion shares, meaning it was oversubscribed by more than 100 per cent.

Proceeds from the sale are expected to provide part of the seed capital for the infrastructure fund.

Mbadi has previously told parliamentary committees that the fund will focus on commercially viable and bankable projects capable of attracting long-term private investment.

The Treasury also plans to run the fund under a governance structure that includes an independent board and professional management, with oversight mechanisms aimed at ensuring transparency and safeguarding public resources.

The government believes the National Infrastructure Fund will help Kenya finance priority projects while gradually reducing reliance on traditional debt to support infrastructure expansion.