National Assembly Passes Ksh5T National Infrastructure Fund Bill

The National Assembly has passed the National Infrastructure Fund Bill, paving the way for the creation of a multi-trillion-shilling fund aimed at financing major infrastructure projects across the country. The legislation now awaits assent by President William Ruto to become law.

The Bill, which sailed through Parliament with significant amendments, gives both Parliament and the Presidency greater oversight over the much-publicised Ksh5 trillion fund. The initiative is expected to support President Ruto’s vision of transforming Kenya into a developed economy, an ambition he has often compared to Singapore’s development trajectory.

Lawmakers described the legislation as one of the most consequential economic policy measures since Tom Mboya spearheaded Sessional Paper No. 10, which laid the foundation for Kenya’s post-independence economic planning.

Governance structure introduced

A key amendment passed by MPs establishes a governing council to oversee the fund. The council will comprise the Cabinet Secretary for the National Treasury, the Governor of the Central Bank of Kenya, the Attorney General, and six additional members drawn from outside the public service.

The council will provide overall direction to the fund, guide the development of investment policies, and oversee the recruitment of directors to the fund’s board.

The amendment was introduced following concerns from legislators and members of the public about the extensive powers initially granted to the Treasury Cabinet Secretary in the original draft of the Bill.

Changes to board composition

Under the revised structure, the Treasury Cabinet Secretary will no longer sit on the board. Instead, the board will consist of eight members: four independent directors competitively recruited by the governing council, three public officers appointed based on expertise or position, and a chief executive officer who will serve as an ex-officio member and be hired by the board.

The powers of the Treasury CS have also been reduced in relation to remuneration matters. The CS will now be required to seek advice from the Salaries and Remuneration Commission before determining benefits for board members.

Parliament strengthens oversight

Members of Parliament also strengthened legislative oversight of the fund by requiring that the board’s investment policy be submitted to the National Assembly for approval. The Treasury Cabinet Secretary will table the policy before the House, which will have 90 days to debate and approve or reject it.

Kathiani MP Robert Mbui urged legislators to safeguard Parliament’s authority over the fund.

“Let us give ourselves power. Don’t take away power. It is our time to take power,” Mbui said during debate.

National Assembly Majority Leader Kimani Ichung’wah said the legislation would play a central role in the country’s development agenda.

“As we go to Singapore through Canaan, these members of the 13th Assembly will have their place in the history of Kenya. The journey to Singapore has been crystallised. It is not only real; we can see it,” Ichung’wah said.

Finance Committee Chairperson Kimani Kuria said the fund would unlock large-scale infrastructure development.

“We are going to have highways because of this law. We will have data centres. I will not be using eight hours from here to Nakuru and Molo,” Kuria said.

Focus on major infrastructure projects

During debate, several MPs raised concerns over ambiguity in the original Bill regarding the types of projects the fund would support. In response, the House amended the legislation to clearly specify that the fund will finance national infrastructure projects.

These include national highways, railway networks, airports, seaports, electricity generation and transmission infrastructure, as well as water reservoirs, irrigation systems and agribusiness infrastructure.

Ichung’wah also challenged opposition leaders to present alternative economic ideas.

“I wish those who are in the United Opposition can set up an economic council to give Kenyans an alternative. When you are a young leader, don’t copy the habits of the old people who have no plan,” he said.

With parliamentary approval secured, the Bill now awaits presidential assent from President Ruto before it becomes law and sets the stage for the operationalisation of the National Infrastructure Fund.

Read: Governance Debate Intensifies Over Proposed Kenya National Infrastructure Fund

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