Speaker of the National Assembly Dr Moses Wetang’ula….Photo/File
NAIROBI, Kenya
The National Assembly has passed the National Infrastructure Fund Bill, a major legislative step aimed at mobilizing nearly Sh5 trillion over the next decade to finance strategic national projects and accelerate economic transformation.
The legislation, sponsored by Majority Leader Kimani Ichung’wah, was approved during its third reading in Parliament and now awaits presidential assent before becoming law.
Once operational, the National Infrastructure Fund (NIF) will support large-scale investments in highways, railways, ports, energy systems and agribusiness infrastructure — sectors widely viewed as critical to Kenya’s long-term economic growth.
Shift From Debt to Investment
One of the key implications of the bill is its shift away from heavy government borrowing toward an investment-led infrastructure financing model.
Kenya’s public debt has surpassed Sh12 trillion in recent years, placing pressure on the national budget through high debt-servicing costs.
The proposed fund is designed to mobilize private capital from pension funds, insurance companies, sovereign wealth funds and international investors to finance infrastructure projects without increasing the country’s debt burden.
Government officials say this model will create a sustainable financing pipeline for long-term national projects while reducing reliance on external loans that have historically funded major infrastructure development.
Major Economic and Development Impact
According to projections discussed in parliamentary debates and committee deliberations, the fund is expected to unlock transformative national projects across multiple sectors.
In the transport sector, the program could support the expansion and dualing of major highways, extension of the Standard Gauge Railway network and modernization of ports and airports to strengthen Kenya’s role as a regional trade hub.
Energy investments are expected to boost electricity generation capacity to power manufacturing and industrial growth, while new irrigation systems and water storage infrastructure could expand agricultural productivity and improve food security.
Oversight and Governance Safeguards
Lawmakers also introduced accountability measures to safeguard the fund and prevent misuse of public resources.
The bill establishes a governing council comprising senior government officials and independent experts to provide strategic oversight.
Parliament will also retain powers to review the fund’s investment policies and monitor its operations.
The legislation provides strict penalties for misappropriation of funds, including heavy fines, repayment of stolen money and possible prison sentences.
Catalyst for Economic Growth
Supporters of the bill say the National Infrastructure Fund could mark a turning point in Kenya’s development strategy by unlocking large-term infrastructure financing without increasing taxes or public debt.
Improved roads, rail networks and ports are expected to lower logistics costs, enhance regional trade and stimulate private sector investment in sectors such as manufacturing, logistics and agribusiness.
If successfully implemented, the initiative could strengthen Kenya’s position as East Africa’s infrastructure and logistics hub while supporting the country’s long-term goal of achieving sustained economic growth and industrialization.
