NAIROBI, Kenya — The High Court has temporarily blocked the establishment, registration, operationalisation and financing of the controversial National Infrastructure Fund (NIF), in a major legal setback for the government’s flagship infrastructure financing plan.
In a ruling issued on December 24, 2025, Milimani Law Courts Judge Bahati Mwamuye granted a conservatory order restraining the state, including the Attorney General and the Cabinet Secretary for the National Treasury, from taking any steps to incorporate, register, operationalise, fund or otherwise give effect to the proposed National Infrastructure Fund.
The decision follows a constitutional petition filed by a group of Kenyans, including surgeon Dr. Benjamin Gikenyi, Eliud Matindi and others, who argue that the creation of the fund through a Cabinet approval on December 15, 2025 was unlawful and violated constitutional and public finance laws.
The petitioners contend that a national public fund such as the NIF can only be established through legislation passed by Parliament or under the Public Finance Management Act, not by executive action or a presidential communiqué.
They also raised concerns about insufficient public participation, lack of a clear legal framework, inadequate transparency and potential duplication of existing constitutional funds such as the Equalisation Fund.
“The respondents purported to create a public fund through executive fiat,” the petition claims, underscoring the principle that public money must be subject to parliamentary oversight and audit safeguards.
The fund was to be seeded with proceeds from the state’s partial divestiture from Safaricom Plc, expected to generate around Sh240 billion, earmarked as initial capital for the NIF and a related Sovereign Wealth Fund.
High Court issues conservatory orders temporarily halting the incorporation, registration, operationalization & financing of the National Infrastructure Fund following the Cabinet’s approval on Dec 15th (see quoted tweet).Proceeds from the state’s partial divestiture from
However, with the High Court’s order in place, any movement of these resources into the fund has been halted pending full court hearings.
Justice Mwamuye directed that the conservatory order remain in force until the inter partes hearing and full determination of the petition, currently scheduled for January 20, 2026, through virtual proceedings.
Under the timeline set by the court, petitioners must serve the respondents and interested parties with the application, petition and order by December 29, 2025, while respondents have until January 9, 2026, to file their responses.
Written submissions from both sides are to be exchanged later in January.
The ruling represents a significant legal hurdle for President William Ruto’s ambitious infrastructure agenda, which aimed to mobilise up to Sh5 trillion in public and private capital for mega projects in transport, energy, agriculture and other key sectors.
As the case unfolds, the legal and constitutional debate over how Kenya finances long‑term development projects is now at the forefront of national discourse, with implications for fiscal oversight, public participation and executive authority under the Constitution.
