President William Ruto chairs a Cabinet meeting at State House, Nairobi on December 15, 2025/PCSThe Cabinet has approved the establishment of the National Infrastructure Fund and the Sovereign Wealth Fund, kicking off an ambitious Sh5 trillion long-term development and economic transformation agenda.
According to a dispatch from State House, the two funds will serve as the backbone of the government’s plan to transition Kenya into a first-world economy through a sustainable, investment-led growth model that reduces overreliance on borrowing and taxation.
Approved as a limited liability company, the National Infrastructure Fund will act as the central vehicle for aligning public financial resources with national development priorities.
The fund is expected to play a critical role in mobilising domestic capital, monetising mature public assets and crowding in private sector investment for large-scale infrastructure projects.
Through innovative resource mobilisation, strategic asset monetisation, democratisation of ownership via capital markets and the deployment of national savings, the government aims to unlock long-term private capital to finance priority investments.
This approach is designed to shift infrastructure financing away from debt-heavy models toward partnerships that preserve public value while accelerating delivery.
Under the new framework, all proceeds from privatisation will be ring-fenced and invested exclusively in public infrastructure projects that generate and preserve long-term economic value.
State House said this move will ensure that the sale of public assets translates directly into productive investments that benefit current and future generations.
“Every shilling invested through the Fund is expected to crowd in up to Sh10 additional shillings from long-term investors, including pension funds, sovereign partners, private equity funds and development finance institutions,” the Cabinet dispatch stated.
In a parallel decision, Cabinet approved the Sovereign Wealth Fund Policy, which establishes a comprehensive framework for the prudent management and investment of revenues from mineral and petroleum resources, dividends from public investments and a portion of privatisation proceeds.
These revenues will be channeled into a dedicated national fund to safeguard long-term economic stability.
Anchored on principles of inter-generational savings, protection against external economic shocks and strategic investments with commercial returns, the Sovereign Wealth Fund is expected to strengthen fiscal discipline, enhance economic resilience and support long-term national competitiveness.
The policy also operationalises Article 201 of the Constitution, which emphasises inter-generational equity in public finance management.
State House said the fund advances the Kenya Kwanza administration’s manifesto, which prioritises investment-led growth as a pathway to job creation, industrial expansion and shared prosperity.
Together, the National Infrastructure Fund and the Sovereign
Wealth Fund will finance Kenya’s transformation agenda across key sectors.
These include strengthening food security and positioning Kenya as a net-exporting economy, expanding modern transport and logistics networks to drive productivity and trade, and scaling up energy generation to power industrialisation and the digital economy.
The Cabinet emphasised that both funds will be professionally and independently managed under clear governance, transparency and accountability frameworks to safeguard public interest and investor confidence.
“A competitively appointed Board and CEO will oversee the National Infrastructure Fund, while the Sovereign Wealth Fund will operate under a robust policy framework to ensure prudent investment, fiscal discipline and inter-generational equity,” the dispatch said.
