President William Ruto, on Monday, March 9, assented to the National Infrastructure Fund Bill 2026.
The new law was signed during a ceremony at State House and was attended by senior officials from both the Executive and Legislature.
The law formally establishes the national infrastructure fund (NIF), which aims to mobilize nearly Ksh 5 trillion over the next decade to shift infrastructure financing from a debt-driven model to a sustainable, investment-led approach.
The funds are expected to be utilized for key projects across sectors, including transport, energy, water, irrigation, and digital connectivity.
The Fund will also support the development of highways, railways, ports, agribusiness infrastructure, and other strategic national projects.
Unlike previous models, which largely relied on borrowing to finance critical infrastructure development, the NIF is designed to attract investments from both public and private sectors.
NIF will be managed by two entities, a governing council and a board, which will ensure the fund works seamlessly.
The council will comprise the Cabinet Secretary for the National Treasury, the Governor of the Central Bank of Kenya, the Attorney General, and six other members who are not public officers.
On the other hand, the board will comprise four independent directors to be competitively recruited by the governing council, three public officers appointed based on their expertise, and the chief executive officer hired by the board of directors.
NIF has been structured as a body corporate and can own property, enter into contracts, and invest in projects, but is barred from borrowing or taking credit against its balance sheet.
The fund will initially be capitalised using proceeds from the Kenya Pipeline Company (KPC) initial public offering, which raised Sh109 billion.
