Kenya has taken a significant step toward transforming how it finances major development projects after the National Assembly passed the National Infrastructure Fund Bill, 2026, paving the way for the establishment of a new financing framework designed to mobilise trillions of shillings for infrastructure development.
Members of Parliament approved the legislation on Thursday, March 5, during its third reading in the National Assembly.
The bill was introduced by Majority Leader and Kikuyu Member of Parliament Kimani Ichung’wah and passed through a voice vote, with the majority of lawmakers supporting the proposal.
With parliamentary approval secured, the bill will now be forwarded to William Ruto for assent, the final constitutional step before it becomes law.
The proposed National Infrastructure Fund (NIF) aims to mobilise nearly Ksh5 trillion over the next decade to finance large-scale infrastructure projects across the country.
The initiative represents a major shift from Kenya’s traditional reliance on public borrowing to a more investment-driven model that attracts capital from diverse sources.
Under the bill’s framework, the fund will draw investments from pension funds, sovereign wealth funds, collective investment schemes, climate financing, and other private-sector investors.
According to the legislation, the fund will operate as a body corporate with powers to own property, enter into contracts, and invest in infrastructure projects nationwide.
However, it will not be allowed to borrow or take credit against its balance sheet, a measure intended to prevent the accumulation of additional public debt.
The fund will be managed by a seven-member Board of Directors chaired by an independent director. The Cabinet Secretary for the National Treasury will sit on the board alongside four independent directors and two experts in development banking.
Strict eligibility rules will also prevent individuals with recent government employment or political affiliations from serving on the board to safeguard the fund’s independence.
Parliamentary records show the bill underwent extensive legislative scrutiny before its passage.
It was first introduced for consideration in the House and later reviewed at the committee stage, where professional bodies including the Institute of Public Finance and the Institute of Certified Public Accountants of Kenya submitted views and recommendations.
President Ruto has strongly defended the initiative, describing it as a transformative mechanism to accelerate Kenya’s development agenda.
Speaking earlier at State House in Nairobi, the president said the government expects to mobilise about Ksh2.5 trillion – half of the fund’s target by April, with the remainder expected to be raised progressively over the next ten years.
However, the proposal has sparked debate among political leaders. Wiper Party leader Kalonzo Musyoka has called on Treasury Cabinet Secretary John Mbadi to appear before Parliament to clarify concerns surrounding the fund’s legal and constitutional framework.
Despite the criticism, the government maintains that the National Infrastructure Fund will unlock long-term financing for key sectors including roads, energy, housing, and other strategic national development projects.
