Cabinet Approves Ksh5 Trillion National Infrastructure Fund

The Cabinet has approved the establishment of a Ksh5 trillion National Infrastructure Fund, marking a major milestone in Kenya’s long-term plan to accelerate economic growth and position the country as a first-world economy.

Through a Cabinet Dispatch on Monday, December 15, the government also announced that the Sovereign Wealth Fund was  approved as part of efforts to mobilise local sources to improve the country’s financial standing. 

The National Infrastructure Fund was approved as a limited liability company and will act as an engine for mobilising and deploying capital into infrastructure projects, which are high priority. 

“Approved as a limited liability company, the National Infrastructure Fund will serve as the central engine for aligning the administration’s financial resources with national development priorities,” the dispatch read. 

Unlike traditional taxation, the two national development funds will use creative financing by tapping into domestic resources, selling mature public assets, and deploying national savings, while also attracting foreign investors through capital markets.

Under the new framework, all proceeds from privatisation will be strictly set aside for infrastructure investment.