The national assembly has passed the national infrastructure fund bill (national assembly bill no. 1 of 2026), moving the legislation one step closer to becoming law. The bill, introduced by majority leader Kimani Ichung'wah, underwent its third reading and was approved by a large majority on Thursday, March 5. Opposition leaders have criticized the move and demanded treasury cabinet secretary John Mbadi be summoned over alleged contradictions in his statements.
The national infrastructure fund bill was passed by the national assembly on March 5, 2026, after several legislative stages. Introduced by majority leader Kimani Ichung'wah, it went through the first reading, committee stage involving stakeholder consultations, public hearings, and submissions from bodies like the institute of public finance and ICPAK (institute of certified public accountants of Kenya).
It then underwent the second reading, where the finance committee tabled its report. The fund aims to mobilize almost Ksh5 trillion over the next 10 years to shift infrastructure financing from a debt-led to an investment-led model. It will draw private capital and alternative sources such as pension funds, collective investment schemes, sovereign wealth funds, and climate finance.
Legally structured as a body corporate, the fund can own property, enter contracts, and invest in projects but is prohibited from borrowing or taking credit against its balance sheet. It will be overseen by a seven-member board of directors, chaired by an independent director, with the national treasury cabinet secretary also on the board. The board includes four independent directors and two development banking experts, with strict rules barring members from recent government employment or political affiliations to ensure independence.
President William Ruto, speaking on February 20, 2026, at a Methodist church leadership event at State House, Nairobi, stated that Kenya expects to raise Ksh2.5 trillion, half the total target, by April this year, with the remaining Ksh2.5 trillion over 10 years as outlined.
However, the fund has faced significant opposition, particularly from the united opposition, which has called for treasury cabinet secretary John Mbadi to be summoned by parliament to explain alleged contradictions regarding the NIF. Addressing the press on March 5, Wiper party leader Kalonzo Musyoka accused Mbadi of misleading MPs about the legal and constitutional status of the Ksh5 trillion fund.
According to the opposition, Mbadi's statements to parliamentary committees contradict information in his court affidavit. "These concerns on NIF are directly confirmed by the conduct of John Mbadi, in an affidavit, consistently presenting the Fund to parliamentary committees as a public fund subject to parliamentary oversight," Kalonzo said.
The affidavit revealed a contradictory reality, indicating the fund is not a constitutional public fund under Article 206 but a limited liability company that had not even been incorporated when Mbadi gave assurances to MPs. "This court affidavit revealed a whole contradictory reality. The entity is not a Fund within the meaning of Article 206 at all, but a limited liability company that had not even been incorporated when these assurances were being given to MPs," he added.
Opposition leaders described Mbadi's contradiction as a serious constitutional issue, arguing that misleading parliament on such a major financial matter undermines public accountability. "As a CS who assures parliament of a Ksh5 trillion vehicle constitutional status, swears under oath, then misleads them, has not made a technical error. He has misled the legislature on a matter of the highest fiscal and constitutional consequence," Kalonzo affirmed. He added, "The National Assembly must summon CS Mbadi to reconcile his parliamentary presentation with his court testimony."
