NAIROBI, Kenya – The Cabinet has approved the establishment of two flagship investment vehicles — the National Infrastructure Fund and a Sovereign Wealth Fund — setting the stage for a Sh5 trillion long-term development drive aimed at transforming Kenya’s economy and reducing dependence on borrowing and taxation.
In a dispatch from State House, the government said the funds will anchor a new investment-led growth model designed to propel Kenya towards first-world economic status while preserving public value and strengthening fiscal discipline.
The National Infrastructure Fund, approved as a limited liability company, will serve as the government’s central platform for financing large-scale infrastructure projects aligned with national development priorities.
Unlike traditional debt-heavy financing models, the fund is expected to mobilise domestic capital, monetise mature public assets and crowd in private sector investment through partnerships that accelerate delivery while safeguarding public ownership.
State House said all proceeds from privatisation will be ring-fenced and invested exclusively in income-generating public infrastructure, ensuring that the sale of state assets translates into long-term economic value for both current and future generations.
Through innovative financing, strategic asset recycling, capital markets participation and deployment of national savings, the government aims to unlock long-term private capital for priority projects.
“Every shilling invested through the Fund is expected to crowd in up to Sh10 from long-term investors, including pension funds, sovereign partners, private equity funds and development finance institutions,” the Cabinet said.
In a parallel decision, the Cabinet approved the Sovereign Wealth Fund Policy, creating a framework for managing and investing revenues from mineral and petroleum resources, dividends from public investments and a portion of privatisation proceeds.
The revenues will be channelled into a dedicated national fund aimed at strengthening economic stability, cushioning the economy from external shocks and safeguarding wealth for future generations.
Anchored on principles of inter-generational equity, fiscal discipline and commercially viable investments, the Sovereign Wealth Fund is expected to enhance Kenya’s economic resilience and long-term competitiveness.
State House said the policy gives effect to Article 201 of the Constitution, which underscores prudent use of public resources and equity between present and future generations.
Together, the two funds will finance Kenya’s transformation agenda across key sectors, including food security, transport and logistics, energy generation, industrialisation and the digital economy.
The Cabinet said both funds will be professionally and independently managed under strict governance, transparency and accountability frameworks to protect public interest and boost investor confidence.
“A competitively appointed Board and CEO will oversee the National Infrastructure Fund, while the Sovereign Wealth Fund will operate under a robust policy framework to ensure prudent investment, fiscal discipline and inter-generational equity,” the dispatch said.
