NAIROBI, Kenya — The Kenyan government has clarified that the newly established National Infrastructure Fund (NIF) will not finance stadiums, public parks, or other social infrastructure projects, as the public seeks clarity on how the fund will operate.
According to official guidelines on the fund’s operations, such projects are classified as pure public goods and cannot generate predictable revenue streams required to repay investors under the NIF’s investment-based financing model.
Government officials said the fund will instead prioritize revenue-generating infrastructure, including airports, toll highways, energy projects, and logistics facilities.
“These projects are bankable because they generate reliable income streams such as landing fees, cargo handling charges, and commercial operations,” the government said in its clarification.
Investment Model
The explanation comes a day after William Ruto signed the National Infrastructure Fund Bill into law, establishing a financing vehicle aimed at mobilising Sh5 trillion to accelerate major infrastructure projects across the country.
The fund is designed to attract private capital and alternative financing sources, marking a shift away from Kenya’s traditional reliance on external borrowing to finance infrastructure development.
Under the model, projects must demonstrate sustainable revenue streams capable of supporting investment repayments.
Because facilities such as stadiums and public parks typically do not generate direct income, they will instead continue to be financed through government budgets, donor grants, or other public funding mechanisms.
JKIA Expansion First Project
President Ruto has already announced that the expansion of Jomo Kenyatta International Airport (JKIA) will be the first major project financed through the fund.
The airport expansion is part of a broader strategy to strengthen Kenya’s role as a regional aviation hub and support economic growth through improved transport and logistics infrastructure.
Financing Sources
Officials say the NIF will mobilise funding from a combination of investment capital, the national budget, and proceeds from the privatisation or sale of state-owned enterprises.
Potential investors include domestic pension funds, collective investment schemes, sovereign wealth funds, and climate finance institutions.
The government also clarified why private investors will be involved in decision-making on which projects receive funding.
Authorities say investor participation in oversight structures will introduce professional financial discipline, accountability, and rigorous project evaluation, ensuring that only viable infrastructure investments are financed.
No Salary Deductions
Addressing public concerns about possible mandatory contributions, John Mbadi, Cabinet Secretary for the National Treasury, said the fund will not involve deductions from civil servants’ salaries, unlike other state-backed initiatives.
“No, we will not deduct civil servants’ salaries. This fund is being set up using seed capital from the divestiture of government shares in state-owned enterprises,” Mbadi said in an interview.
Policy Shift
The establishment of the NIF reflects a broader policy shift in Kenya’s infrastructure financing strategy as the government seeks new funding models that reduce pressure on public debt while sustaining large-scale development projects.
