Kenya's Cabinet has approved a Ksh5 trillion National Infrastructure Fund to accelerate economic growth. Alongside a new Sovereign Wealth Fund, it will employ creative financing like public asset sales and national savings to support priority projects. The decision follows President Ruto's pledge to realize the fund soon.
On December 15, 2025, the Cabinet issued a dispatch approving the National Infrastructure Fund as a limited liability company. It will serve as the central engine for aligning government financial resources with national development priorities, according to the statement. The Sovereign Wealth Fund was also endorsed to bolster fiscal discipline and long-term economic resilience through an intergenerational savings approach.
The infrastructure fund will draw on domestic resources, sales of mature public assets, and national savings, while attracting foreign investors via capital markets. All privatization proceeds will be dedicated exclusively to infrastructure investments. The wealth fund establishes a framework for handling revenues from minerals, petroleum, public investment dividends, and portions of privatization gains.
Targeted projects include enhancing food security by building 50 mega dams, 200 mini-dams, and over 1,000 micro-dams to irrigate an additional 2.5 million acres. For transport, 2,500 km of highways will be dualized, 28,000 km of roads tarmacked, and the Standard Gauge Railway extended to Malaba. Oil pipelines will expand, while Mombasa and Lamu ports and airports receive upgrades. In energy, the government plans to add at least 10,000 megawatts over seven years, harnessing geothermal, hydro, solar, wind, and nuclear sources.
Both funds will be managed professionally and independently with rigorous governance; the infrastructure fund by a competitively selected board and CEO, and the wealth fund under a strong policy framework.
