NAIROBI, Kenya — The National Treasury has invited public feedback on a draft law that seeks to establish a Sovereign Wealth Fund to strengthen Kenya’s fiscal resilience, finance strategic projects, and secure resources for future generations.
The proposed Kenya Sovereign Wealth Fund Bill, 2025, published this week, outlines a framework for creating a state-owned investment vehicle that will manage surplus revenues and savings for long-term national benefit. Kenyans have until November 7, 2025, to submit their comments before the Bill is finalized.
In a public notice, Treasury Cabinet Secretary John Mbadi urged Kenyans to take part in shaping what he described as “an important Bill for our country.”
The draft legislation is available on the Treasury website, with submissions invited through submissions@treasury.go.ke
or in hard copy.
“Please do not be left out in the development of this important Bill for our country,” Mbadi said in the notice.
Three-tier fund structure
The Bill proposes the establishment of the Kenya Sovereign Wealth Fund (KSWF), with ownership vested in the National Treasury in trust for the people of Kenya.
The fund will comprise three distinct components — the Stabilisation Component, the Strategic Infrastructure Investment Component, and the Future Generation (Urithi) Component — each maintaining a separate account at the Central Bank of Kenya (CBK).
The Stabilisation Component is designed to cushion the economy against revenue shocks and major macroeconomic disruptions.
Once its balance reaches five percent of the nominal Gross Domestic Product (GDP), further transfers will stop, with any surplus directed toward debt repayment or reallocation to other fund components.
The Strategic Infrastructure Investment Component will channel resources into national and county-level projects in sectors such as agriculture, energy, transport, housing, water, health, and education.
Withdrawals from this component will be made only for budgeted expenditures or as permitted under Article 223 of the Constitution.
The Urithi Component, meanwhile, will accumulate savings and investments for future generations, providing a buffer when revenues from extractive industries such as oil and minerals decline.
Governance and oversight
The fund will operate under the Public Finance Management Act, with a Board based in Nairobi providing oversight.
The Board will include a chairperson appointed by the President, the Treasury Principal Secretary, the CBK Governor, four independent members, and a Chief Executive Officer (CEO) serving as an ex officio member.
The Bill requires the Board’s composition to reflect gender balance and ethnic diversity, while members and staff must comply with the public service code of conduct. They will also enjoy legal protection for actions taken in good faith.
To ensure accountability, the CEO will prepare quarterly financial statements and annual reports for audit by the Auditor-General, while Parliament will receive estimates of expected resource revenues and planned withdrawals from the fund as part of the national budget.
Strict investment rules
The draft law sets out strict investment guidelines to safeguard public funds. The Sovereign Wealth Fund cannot be used as collateral, to issue loans or advances, or for speculative investments.
Instead, its resources must be prudently managed, balancing risk and return while supporting macroeconomic stability.
If revenues from natural resources are significantly depleted, the Bill provides for the consolidation of all three fund components into a single account, with future withdrawals limited to earnings and dividends from investments.
“The National Treasury encourages all stakeholders to participate in shaping this critical legislation for Kenya’s economic future,” the notice concludes.
