A major step towards realizing the Kenyan vision of a KSh 5 trillion master plan, which will see the country be a first-world economy, was achieved when the cabinet approved the creation of a National Infrastructure Fund on December 15, 2025. The National Infrastructure Fund will see financial resources allocated by government align with national developmental objectives.
The National Infrastructure Fund is meant to synchronize financial resources of the Kenyan government with developmental trends in the country. The National Infrastructure Fund is a specialized Sovereign Wealth Fund with a focus on raising financial resources to invest in various national infrastructure projects.
The investment approach involves the mixing of public seed capital with private investment, and its financing model consists of setting aside all privatized income derived from national assets for investment solely in those projects which have a capacity to create and sustain future wealth. The raising of financial resources for establishing this fund will come from sales of national assets, such as privatization of the Kenya Pipeline Company.
The fund got approval from the cabinet as a limited liability company (LLC), which will shield shareholders in case of any liability being placed on the company. In addition, a Sovereign Wealth Fund (SWF) Policy was approved by the cabinet. The main purpose of establishing the NIF is to transform the manner in which financial support is provided towards funding the national agenda in terms of developing the country with less borrowing and taxes.
The Cabinet considers this financing framework a radical change towards a sustainable model of development. To keep this initiative above reproach and above board, this investment fund will be expertly and independently managed through a governance structure that promotes clarity, transparency, and accountability, with a competitively recruited Board and a Chief Executive Officer.
Such an initiative aims to promote planning among projects by ensuring they achieve a level of bankability before they can access funding, thus eliminating stalled projects. The NIF, in partnership with the Sovereign Wealth Fund, will fast-track the transformation agenda in major sectors in Kenya. The investments will focus on three major sectors:
Food Security & Agriculture
The government plans to undertake massive irrigation and modernization projects by constructing 50 mega dams, 200 mini-dams, and over 1,000 micro-dams. The projects will irrigate an additional 2.5 million acres of additional land (Kenya has at least 14 million acres of arable land), which will benefit agro-industrialization and improve life in rural areas.
Transport & Logistics
Infrastructural development will be advanced through the dualling of 2,500 km of roads and the tarmacking of 28,000 km of roads. There will be an extension of the Standard Gauge Railway (SGR) to Malaba, expansion of regional oil pipelines and upgrades to ports in Mombasa and Lamu as well as key airports. The Cabinet has approved a new financing mechanism dedicated to priority transport projects, including the Naivasha to Kisumu SGR Phase 2B, the SGR extension to Uganda, and the implementation of Bus Rapid Transit systems.
Energy Production and Industrialization in Kenya
In order to fuel industries and drive the digital economy, a definitive growth in energy production will be undertaken with a goal of increasing generating capacity by at least 10,000 megawatts in seven years. Such investment will tap into the resources available in geothermal power, hydro, solar, wind, and nuclear.
Through dedicated funds, huge projects will be achieved by creating a source of patient capital in addition to acting as a catalyst in attracting investment. The creation of the NIF implements Article 201 of the Constitution with regards to inter-generation equity, ensuring financial prosperity for both this and future generations through increased fiscal discipline and resilience.
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