Budget Controller Flags Gaps In The Ksh.5 trillion National Infrastructure Fund
Several experts, including the Controller of the Budget (CoB) and the Auditor General, have expressed concern about the establishment of the Ksh.5 trillion National Infrastructure Fund.
In a statement presented to the National Assembly Finance Committee during stakeholder consultation on the National Infrastructure Fund Bill 2026, CoB Margaret Nyakang’o’s office states that the Fund was constituted as a corporate organization rather than a public fund, rendering it vulnerable to exploitation.
She questioned the legality of excluding her office from approving the withdrawal and expenditure of the earnings.
Other financial institutions have questioned the Fund’s governance and institutionalization, arguing that it should be controlled by an independent agency rather than the National Treasury.
According to the CoB, the law is vague and does not explain the PFMA Act’s applicability to the Fund, how it would be overseen by the CoB, or who would allow withdrawals and expenditures.
Furthermore, Nyakang’o claims that the National Infrastructure Fund Bill 2026 makes no clear mention of money being excluded from the consolidated fund.
As a result, the proceeds must first be placed in the consolidated fund before being transferred to the infrastructure fund, a concern shared by the Institute of Public Finance.
“For example, if we are to sell KICC, how do we ensure that the money goes to the National Infrastructure Fund and not the Consolidated Fund?” Posed the institute.
In its submission to the National Assembly Finance Committee, the Institute of Certified Public Accountants of Kenya (ICPAK) stated that the Ksh.5 trillion National Infrastructure Fund should be managed by an independent entity in order to enhance credibility and transparency.
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ICPAK council member Hesbon Omollo stated: “We want oversight and credibility…which must be enhanced through funds management by an independent body.”
The Office of the Controller of Budget, the Institute of Public Finance and ICPAK recommended that the bill provide authorisation of withdrawals by the CoB and integrate the fund fully into the budget cycle.
Additionally, provide quarterly and annual reporting of the fund’s performance to the CoB, and clarify the governance and regulatory framework applicable to the fund.
The National Infrastructure Fund Bill 2026 has undergone its first reading in Parliament, even as it returns to the House for the second reading next week, ahead of public participation.
Budget Controller Flags Gaps In The Ksh.5 trillion National Infrastructure Fund
