Ruto Signs National Infrastructure Fund Bill into Law

President William Ruto has signed the National Infrastructure Fund (NIF) Bill, 2026 into law, setting a new framework for financing and managing Kenya’s major development projects. The ceremony took place at State House, Nairobi, with government officials and private sector leaders, including Speaker of the National Assembly Moses Wetang’ula and Treasury Cabinet Secretary John Mbadi, in attendance.

The National Assembly passed the legislation on March 6 after extensive debates and amendments to improve oversight and governance of the fund. The NIF is expected to mobilize nearly Sh5 trillion over the next decade for key projects such as highways, railways, ports, agribusiness infrastructure, and energy systems.

Unlike previous government borrowing models, the fund introduces an investment-led approach, inviting participation from both public and private sectors. Funding sources will include government allocations, private investments, privatisation proceeds, grants, and loans.

National Assembly Majority Leader Kimani Ichung’wah, who sponsored the bill, described it as one of Kenya’s most important pieces of legislation since the 1965 Sessional Paper No. 10. He said the fund will support the country’s long-term development goals while reducing reliance on debt.

“The journey to Singapore has been crystallized. We have now put the roadmap to the first world,” Ichung’wah said, referring to President Ruto’s vision of infrastructure modernization.

The bill initially faced criticism over potential executive influence, but lawmakers introduced amendments to enhance transparency and parliamentary oversight. Under the law, a Governing Council, chaired by the Treasury Cabinet Secretary, will oversee strategic direction and safeguard the fund’s assets. Members include the Central Bank Governor, the Attorney-General, and six independent members appointed by the President for three-year terms. The council is not allowed to interfere in daily operations, ensuring board independence.

The fund’s board has also been restructured to include four independent directors with professional qualifications and at least ten years of experience in finance, engineering, or law. A Chief Executive Officer will serve as Administrator to streamline management.

The Treasury Cabinet Secretary is required to submit the fund’s Investment Policy to Parliament within 90 days, where it can be approved, amended, or rejected. To prevent misuse, anyone who misappropriates NIF funds faces repayment of twice the stolen amount, a fine of at least Sh10 million, or a minimum five-year jail term.

The law defines national infrastructure as including highways, railway networks, airports, seaports, and electricity generation, transmission, and distribution systems. The fund will focus on strategic commercial investments, while project preparation will remain under existing frameworks such as the Public Private Partnership Act.