Nairobi — The Cabinet will on Monday consider and adopt the framework for the proposed National Infrastructure Fund (NIF), a flagship instrument that President William Ruto says will anchor Kenya’s future development by mobilising long-term investment, safeguarding privatisation proceeds, and reducing reliance on debt and taxation.
Speaking during Jamhuri Day celebrations on Friday, President Ruto said the Fund represents a historic shift in how Kenya finances public infrastructure, ensuring that national assets generate lasting value rather than being used to plug recurrent budget deficits.
“The National Infrastructure Fund will be the engine aligning our financial resources with our development goals through innovative mobilisation of domestic resources, strategic monetisation of mature national assets, democratisation of ownership through the capital markets, and the deployment of national savings,” Ruto said.
He criticised the long-standing practice of channelling privatisation proceeds–such as those from Kenya Airways, KenGen, Kenya Re, and Safaricom–into the national budget to pay salaries and service debts.
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“For decades, Kenya privatised major public assets, yet we cannot point to enduring national infrastructure built from those proceeds,” Ruto said.
“This cycle will end. All current and future privatisation proceeds will be invested strictly into public infrastructure development.”
Sh10 for every Sh1
Ruto stressed that for every shilling invested through the NIF, the government seeks to attract ten shillings from long-term investors, including pension funds, sovereign wealth partners, private equity firms, and development finance institutions.
He said Kenya requires nearly Sh5 trillion to deliver four priority national projects–an amount he described as ambitious but necessary.
“Relying solely on the national budget would take forever, borrowing would deepen our debt burden, and raising taxes would strain households,” he said.
“Inaction would condemn our nation to stagnation.”
Ruto said the NIF provides a credible, sustainable alternative to borrowing while unlocking large-scale private sector capital.
The President also underscored the urgency of expanding Kenya’s energy capacity, noting that the current 3,300MW installed electricity output is inadequate for the needs of agro-processing, mobility, data centres, digital expansion, and the emerging AI-driven economy.
He announced an aggressive plan to generate at least 10,000MW of new energy within seven years, leveraging Kenya’s solar, geothermal, wind, hydro, and nuclear potential.
“Energy is the lifeblood of any modern economy. To compete globally, we must exponentially scale up generation and modernize our infrastructure,” he said.
Ruto further highlighted the newly enacted Government-Owned Enterprises (GOE) Act, describing it as the most far-reaching state corporation reform since independence.
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The law professionalises board appointments through merit-based selection, links leadership roles to measurable performance, and bars anyone who has held political or public office within the last five years from joining SOE boards.
“This ends the era of cronyism and patronage,” Ruto said.
“It revolutionises governance in our state-owned enterprises.”
Alongside the NIF, Cabinet will also consider the Sovereign Wealth Fund Policy, which Ruto said will be anchored on three pillars: savings for future generations, stabilisation against global shocks, and strategic national investments.
The fund will draw capital from natural resource royalties, returns from public investments, and a share of privatisation proceeds.
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“This fund will bring to life Article 201 of the Constitution, which requires that the benefits and burdens of public resource use be shared equitably between present and future generations,” Ruto said.
Ruto noted that the broader financing blueprint was shaped through consultations with key political and economic leaders.
“I discussed this vision with the late Rt Hon Raila Odinga, who reminded me that no nation industrialises without roads, energy, and food security. I also spoke with former President Uhuru Kenyatta, who emphasised the need to scale up infrastructure investment,” he said.
Calling the coming week a turning point, Ruto said Monday’s Cabinet meeting will mark the beginning of Kenya’s shift to modern, asset-driven public finance.
“With the National Infrastructure Fund and the Sovereign Wealth Fund, we begin the journey of transforming our economy from the bottom up–charging forward, full steam, toward economic freedom,” he said.
