Kenya has moved closer to establishing a major new financing vehicle for development projects after the National Assembly of Kenya approved the National #Infrastructure Fund Bill, 2026 during a sitting on Thursday.
The legislation, tabled by Majority Leader Kimani Ichung’wah, cleared its third reading after lawmakers voted in favor through a voice vote. With parliamentary approval secured, the bill will now be forwarded to William Ruto for presidential assent, the final step required before the proposed fund becomes operational.
The National Infrastructure Fund (#NIF) is designed to raise nearly Ksh5 trillion over the next decade to finance large-scale national infrastructure projects. The initiative aims to reduce reliance on government borrowing by attracting private and institutional investors into the country’s development agenda.
During the legislative process, the bill underwent multiple stages including the first reading, committee review, and a second reading debate. Parliamentary committees engaged stakeholders and received submissions from institutions such as the Institute of Public Finance and the Institute of Certified Public Accountants of Kenya (ICPAK) before recommending it for passage.
Once operational, the fund will mobilize capital from sources including pension funds, sovereign wealth funds, climate financing facilities, and collective investment schemes. Structured as a corporate body, the fund will be allowed to invest in infrastructure projects and enter contractual agreements but will not be permitted to borrow against its own balance sheet.
The institution will be governed by a seven-member board chaired by an independent director, with the Treasury Cabinet Secretary also serving on it.
Speaking earlier at State House Nairobi, President #Ruto indicated that Kenya hopes to mobilize Ksh2.5 trillion by April, half of the fund’s overall target.
However, opposition figures including Kalonzo Musyoka of the Wiper Party have criticized the proposal, accusing Treasury Cabinet Secretary John Mbadi of providing inconsistent explanations about the fund’s legal framework. Ruto has dismissed the criticism, describing the initiative as a transformative strategy to accelerate Kenya’s development ambitions.