The Lower Eastern Times Opening The Third Eye
Related Articles
The Cabinet has given the green light to the creation of the National Infrastructure Fund alongside a Sovereign Wealth Fund, setting in motion a bold Sh5 trillion long-term development and economic transformation plan.
In a statement from State House, the government said the two funds will anchor its strategy to move Kenya toward a first-world economy through a sustainable, investment-driven growth model that lessens dependence on borrowing and taxation.
Click here to join our WhatsApp Channel
Structured as a limited liability company, the National Infrastructure Fund will become the main vehicle for coordinating public financial resources with national development priorities. It is expected to mobilise local capital, unlock value from mature public assets and attract private sector investment into major infrastructure projects.
By adopting innovative financing methods, monetising assets, widening ownership through capital markets and tapping national savings, the government aims to draw in long-term private capital for priority investments. This model seeks to reduce reliance on debt while promoting partnerships that protect public value and speed up project delivery.
Under the new system, all proceeds from privatisation will be ring-fenced and invested solely in public infrastructure projects that generate lasting economic returns. State House said this will ensure that selling public assets directly translates into productive investments for both present and future generations.
Click Here To Subscribe To Our YouTube Channel
The Cabinet noted that every shilling invested through the Fund is projected to attract up to Sh10 more from long-term investors such as pension funds, sovereign partners, private equity firms and development finance institutions.
At the same time, Cabinet approved the Sovereign Wealth Fund Policy, which sets out a framework for the careful management and investment of revenues from minerals and petroleum, dividends from public investments and part of privatisation proceeds. These funds will be placed in a national reserve to support long-term economic stability.
Built on principles of inter-generational savings, protection from external shocks and commercially viable investments, the Sovereign Wealth Fund is expected to strengthen fiscal discipline, boost economic resilience and enhance Kenya’s long-term competitiveness. The policy also gives effect to Article 201 of the Constitution, which stresses inter-generational equity in public finance.
State House said the initiative aligns with the Kenya Kwanza administration’s manifesto, which promotes investment-led growth as a driver of jobs, industrial growth and shared prosperity.
Together, the two funds will support Kenya’s transformation agenda across key sectors, including food security and export growth, modern transport and logistics, and expanded energy generation to fuel industrialisation and the digital economy.
The Cabinet emphasised that both funds will be run professionally and independently under strict governance, transparency and accountability structures to protect public interest and investor confidence.
A competitively appointed board and CEO will oversee the National Infrastructure Fund, while the Sovereign Wealth Fund will operate within a strong policy framework to ensure prudent investment, fiscal discipline and inter-generational fairness.
