Nairobi — Former Attorney General Justin Muturi has raised an alarm over the newly established National Infrastructure Fund, warning it could expose the country to a major corruption scandal similar to Malaysia’s infamous sovereign fund saga.
In an interview on the Capital FM Breakfast Show, Muturi claimed that the fund’s structure and legal framework create loopholes that could allow the diversion and misuse of billions of shillings in public assets with minimal oversight.
“Infrastructure is good. Let us also not be trying to become clever by a inch, by saying that we want to run away from actual borrowing, yet even this one, what we are doing actually, we are taking away from the people, “Muturi stated.
He drew parallels with the 1MDB scandal in Malaysia, which saw billions of dollars siphoned from a state fund, leading to high-profile prosecutions and jail terms for senior government officials, including a former prime minister.
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Muturi criticised the governance structure of the fund, arguing that it concentrates too much power in the hands of the executive.
According to him, the fund’s council chaired by the Treasury Cabinet Secretary has wide discretion over investment decisions, including the ability to create special purpose vehicles and partner with private investors.
“These entities can decide where to invest, how to invest, and who to partner with. Their primary objective will be returns, not necessarily public interest,” he said.
“The end doesn’t justify the means. It does not justify the means at all. It’s for that reason that we have said, we are willing to subordinate our personal ambitions to the interests, the greater interests of Kenyans,”Muturi added.
He warned that such arrangements risk sidelining the Kenyan taxpayer, whose money underpins the investments.
The Former Attorney General argument is what he describes as a deliberate shift away from constitutionally mandated financial controls.
He insisted that proceeds from the sale or privatisation of state assets including stakes in companies such as Safaricom and Kenya Pipeline Company should be channelled through the Consolidated Fund as required by law.
“Any money received by the government, whether through loans, grants or divestiture, must go through the Consolidated Fund. That is what ensures oversight by Parliament and scrutiny by the Auditor General,” he said.
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Muturi warned that diverting such funds into the infrastructure fund could effectively shield them from public scrutiny and weaken accountability mechanisms.
Taxpayers ‘At Risk’
The former AG argued that the current model could leave ordinary Kenyans bearing the risk while private investors reap the benefits.
“Funds are being taken away from public control and placed into vehicles where private interests can participate. The Kenyan taxpayer ends up being the net loser,” he said.
He cautioned that without strict safeguards, the fund could become a conduit for large-scale financial mismanagement.
Muturi said he is opposed to the current legal framework governing the fund, even as he acknowledged the importance of infrastructure development.
“I am not opposed to infrastructure. Infrastructure is good. But the end does not justify the means,” he said.
He urged policymakers to align the fund with constitutional provisions on public finance, warning that failure to do so could have far-reaching consequences.
The National Infrastructure Fund has previously been defended by officials as a critical tool to mobilise financing for large-scale projects without over-reliance on external borrowing.
The fund is expected to play a central role in financing roads, energy, and transport infrastructure under the government’s development agenda.
