NAIROBI, Kenya — Fresh questions have emerged over the government’s plan to establish a National Infrastructure Fund without a specific enabling law, even as Cabinet prepares to consider and approve both the Sovereign Wealth Fund and the proposed infrastructure financing framework.
Journalist Julians Amboko revealed that during engagements with the National Treasury, officials confirmed that while a Draft Sovereign Wealth Fund Bill has already been published and subjected to public participation, no draft legislation exists for the Infrastructure Fund.
According to Amboko, the Treasury Cabinet Secretary, indicated that the government is exploring ways to operationalise the Infrastructure Fund without first anchoring it in statute, despite the fund’s projected size and strategic importance.
“He says the government is working on modalities of setting the Infrastructure Fund without having to precede the same with a Bill,” Amboko said, expressing surprise at the approach given the scale and long-term implications of the fund.
The Infrastructure Fund is expected to be financed largely through privatisation proceeds, with Treasury proposing that revenues from the sale of state-owned assets be split between the Sovereign Wealth Fund and the Infrastructure Fund in a 90:10 or 80:20 ratio starting in 2026.
The plan has raised governance and accountability concerns, particularly among legal and public finance experts, who argue that funds of such magnitude should be established through clear legislative frameworks to ensure transparency, parliamentary oversight, and compliance with the Constitution.
Amboko suggested that the government may be considering amending the Privatisation Act, 2025, to provide a legal basis for the Infrastructure Fund, rather than tabling a standalone Bill.
The development comes at a time when Kenya is grappling with fiscal pressure, rising public debt, and heightened scrutiny over the management of public resources.
Analysts warn that bypassing legislation could expose the fund to legal challenges and weaken safeguards on how privatisation proceeds are allocated and spent.
While the Sovereign Wealth Fund Bill outlines governance structures, investment rules, and oversight mechanisms, the absence of a comparable framework for the Infrastructure Fund risks creating an accountability gap, especially as privatisation accelerates.
Cabinet deliberations on the two funds are expected to shape Kenya’s long-term investment and asset management strategy, with implications for infrastructure development, intergenerational equity, and public trust in state financial reforms.
