Kenya’s parliamentary committee recommended revising rules for the infrastructure fund
Kenya’s parliamentary Committee on Finance and National Planning recommended revising the policy document intended to define the principles for financing commercially viable national infrastructure projects through the National Infrastructure Fund. This concerns the 340 billion Kenyan shilling Infrastructure Fund.
As Nation Kenya reports, the committee identified shortcomings in risk management, assessments of project viability, investment limits, and mechanisms for preventing conflicts of interest. These issues were raised during public consultations involving investment bankers and private-sector fund managers.
Policy document
The policy document was submitted to parliament by Kenya’s Cabinet Secretary for the National Treasury, John Mbadi. The document is intended to help mobilize domestic and international capital to finance commercially viable infrastructure projects.
The National Infrastructure Fund was established under the National Infrastructure Fund Act of 2026. It is expected to attract up to 5 trillion Kenyan shillings without placing an additional debt burden on taxpayers.
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Funding areas
The fund’s resources are planned to be directed toward roads, railway networks, ports, airport development, including the expansion of Jomo Kenyatta International Airport in Nairobi, energy generation, reservoirs, and irrigation.
The fund is also expected to attract non-traditional capital from pension funds, collective investment schemes, and private investors, as well as funds from the monetization of state assets. The fund’s board is to separately manage the financing and implementation of major projects, independently of the National Treasury. The plan is intended to reduce Kenya’s dependence on expensive public borrowing and a significant tax burden through more active involvement of private capital.
According to the publication, Kenya’s public debt absorbs more than 70% of government revenue, limiting resources for development.
