NAIROBI, Kenya, Dec 20 – The government has moved to defend the newly established National Infrastructure Fund (NIF) amid growing public and political scrutiny over its structure, governance and potential impact on public finances.
Government Spokesman Isaac Mwaura said the Sh5 trillion fund, approved by Cabinet in mid-December, is a cornerstone of Kenya’s long-term economic transformation agenda.
The NIF, which was formally approved on December 15, 2025, has been set up as a limited liability company to mobilise domestic savings, monetise mature public assets and attract private capital — including pension and institutional funds — into priority sectors such as transport, energy, water, food security, logistics and the digital economy.
Mwaura said the fund is designed to finance high-impact infrastructure projects without increasing Kenya’s public debt or placing additional strain on taxpayers.
“The National Infrastructure Fund is a strategic financing instrument that will unlock long-term capital for development while safeguarding fiscal discipline,” Mwaura said.
He added that the initiative marks a deliberate shift away from heavy reliance on external borrowing, aligning with President William Ruto’s push for an investment-led growth model.
According to government communications, proceeds from ongoing privatisation efforts will be ring-fenced and channelled into the fund to ensure they are reinvested into productive infrastructure projects.
Officials say the approach is intended to crowd in private sector participation, ease pressure on public finances and generate long-term economic value for both current and future generations.
Mwaura framed the fund as part of a broader national strategy to transition Kenya from an exclusionary, low-income economy into an inclusive and productive one anchored on access to capital, skills development and modern infrastructure.
He insisted the NIF would allow ordinary citizens to participate more directly in the country’s economic growth.
The defence comes amid rising scrutiny from critics who argue that the fund’s corporate structure, governance framework and potential exposure of public assets require stronger parliamentary oversight and clearer safeguards.
Earlier this year, the government announced plans to sell part of its stake in Safaricom, targeting about Sh244.5 billion, as part of broader efforts to mobilise domestic capital for infrastructure development under the National Infrastructure Fund framework.
