NAIROBI, Kenya- Kenya is planning a major overhaul in how it pays for big public projects with the proposed National Infrastructure Fund (NIF), a financing mechanism aimed at mobilising money for long-term development without adding to public debt.
The NIF is being established through the National Infrastructure Fund Bill, 2026, currently before Parliament.
If passed, it will create a corporate investment vehicle with its own legal status, designed to support large infrastructure initiatives such as roads, railways, energy plants, ports, water systems and irrigation.
Under the proposal, the fund will be seeded with proceeds from the privatisation and monetisation of mature public assets.
This initial capital is intended to build confidence among investors and help attract private capital from pension funds, insurers and development partners.
The government says the NIF will shift Kenya away from a reliance on annual budget allocations and heavy borrowing, allowing infrastructure planning and delivery to be stable over decades rather than tied to yearly budgets.
The fund is linked to President William Ruto’s broader economic strategy, which contemplates investing up to Sh5 trillion over the coming decade to transform transport networks, expand energy capacity and improve water security, among other goals.
However, the initiative has faced legal challenges.
In December 2025, a High Court issued a temporary injunction halting the fund’s establishment, saying it should be set up through clear legislative processes rather than by executive action alone, and raising questions about parliamentary oversight and public finance safeguards.
As it stands, the NIF Bill seeks to give Parliament the authority to debate and approve the fund’s framework, including provisions for corporate governance, transparency and accountability. Lawmakers are also soliciting public views ahead of debates on the bill.
If enacted, the National Infrastructure Fund could become a central pillar of Kenya’s infrastructure strategy, enabling sustained investment in projects critical to economic growth and connectivity.
