The Cabinet has approved the establishment of a KSh 5 trillion National Infrastructure Fund, a step in Kenya’s long-term plan to accelerate economic growth.
National Infrastructure Fund as Central Investment Engine
According to a Cabinet Dispatch issued on December 15, the Fund will be incorporated as a limited liability company and serve as the central vehicle for mobilising and deploying capital into priority infrastructure projects.
“Approved as a limited liability company, the National Infrastructure Fund will serve as the central engine for aligning the administration’s financial resources with national development priorities,” the dispatch stated.
Unlike traditional taxation, the Fund will rely on creative financing by tapping domestic resources, selling mature public assets, deploying national savings, and attracting foreign investors through capital markets.
𝗖𝗔𝗕𝗜𝗡𝗘𝗧 𝗥𝗘𝗦𝗢𝗟𝗨𝗧𝗜𝗢𝗡𝗦 – https://t.co/4aablVr1aE pic.twitter.com/n2VGIaGK73
— State House Kenya (@StateHouseKenya) December 15, 2025
Sovereign Wealth Fund to Anchor Long‑Term Growth
The cabinet also approved the creation of a Sovereign Wealth Fund (SWF) to strengthen fiscal resilience and mobilise local sources of capital.
Under the new framework:
- All privatisation proceeds will be ring-fenced strictly for infrastructure investment.
- The SWF will manage revenues from mineral and petroleum resources, dividends from public investments, and a portion of privatisation proceeds.
- Anchored on intergenerational savings, the Fund is designed to preserve national wealth while protecting against external shocks.
“Anchored on inter‑generational savings, protection against external shocks and strategic investments with commercial returns, the Sovereign Wealth Fund will strengthen fiscal discipline, enhance resilience and support long‑term national competitiveness,” Cabinet noted.
Policy and Governance Framework
The Sovereign Wealth Fund policy sets out a structured framework for prudent management of national revenues. Both funds will be professionally and independently managed:
- The National Infrastructure Fund will be overseen by a competitively appointed board and chief executive officer.
- The Sovereign Wealth Fund will operate under a robust policy structure to ensure transparency and accountability.
Boosting Food Security
The government aims to leverage the funds to expand irrigation and rural livelihoods:
- Construction of 50 mega dams, 200 mini‑dams, and 1,000 micro-dams
- Bringing an additional 2.5 million acres under irrigation
Expanding Transport and Logistics
Infrastructure expansion plans include:
- Dualization of 2,500 km of highways
- Tarmacking of 28,000 km of roads
- Extension of the Standard Gauge Railway to Malaba
- Modernisation of airports and ports in Mombasa and Lamu
Energy for Industry and Digital Economy
The government plans to add at least 10,000 megawatts of power over the next seven years to support manufacturing, digital expansion, e‑mobility, and emerging technologies. This will harness Kenya’s diverse energy potential, including geothermal, hydro, solar, wind, and nuclear resources.
Mobilising Capital for Long‑Term Growth
Every shilling invested through the Fund is expected to crowd in up to Sh10 from long‑term investors such as pension funds, sovereign partners, private equity, and development finance institutions.
Together, the National Infrastructure Fund and the Sovereign Wealth Fund are designed to safeguard public assets, ensure long‑term value creation, and operationalise Article 201 of the Constitution on intergenerational equity, advancing the Kenya Kwanza administration’s investment‑led growth agenda.
