January 17, 2026
Cabinet Approves Ruto's Ksh5 trillion National Infrastructure Fund

Cabinet Approves Ruto’s Ksh5 trillion National Infrastructure Fund

The Cabinet has approved the formation of a KSh5 trillion National Infrastructure Fund.

This marks a significant step forward in Kenya’s long-term strategy to accelerate economic growth and position the country as a first-world economy.

In a cabinet dispatch on Monday, December 15, the administration also stated that the Sovereign Wealth Fund had been approved as part of attempts to mobilize local sources to enhance the country’s financial status.

The National Infrastructure Fund was approved as a limited liability corporation, and it will serve as an engine for mobilising and deploying finance into high-priority infrastructure projects.

“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 the traditional methods of raising funds through taxation, the two funds will utilise new creative ways of raising funds.

These include tapping into domestic resources, selling mature public assets and using national savings.

The government also aims to leverage on foreign investors through capital markets.

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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.

Cabinet Approves Ruto’s Ksh5 trillion National Infrastructure Fund

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