President William Ruto has signed the Sovereign Wealth Fund Bill, 2026 into law, establishing a national investment fund designed to preserve wealth generated from Kenya’s natural resources and strategic investments for future generations.
The new law creates a framework for investing revenues from petroleum, minerals and other strategic assets, with the aim of promoting long-term economic stability and sustainable national development.
President Ruto described the legislation as a historic milestone that will ensure the country’s natural resource wealth benefits both present and future generations.
“With this consequential law, Kenya has put in place watertight mechanisms that will ensure the resources attained from strategic assets and natural resources endure for generations,” Ruto said.
He said the Sovereign Wealth Fund would ensure that proceeds from petroleum and other valuable mineral resources are not entirely consumed by the current generation but are invested for the benefit of future Kenyans.
The Act establishes three key investment windows under the fund.
The Stabilisation Fund will cushion the economy against internal and external shocks, while the Strategic Investment Window will finance commercially viable national development projects aimed at stimulating economic growth and creating jobs.
The third component, known as the Urithi Fund, will preserve a portion of revenues from petroleum and mineral resources for future generations.
Under the new law, 30 per cent of revenues generated from petroleum and mineral resources will be channelled into the Urithi Fund, with the remaining funds allocated to economic stabilisation and strategic investments.
The Sovereign Wealth Fund becomes the second major financial institution established under the government’s economic transformation agenda after the creation of the National Infrastructure Fund (NIF) in March 2026, which was designed to mobilise private capital for infrastructure development.
Deputy President Kithure Kindiki welcomed the enactment of the law, describing it as one of Kenya’s most significant economic reforms.
“The entry into force of the Sovereign Wealth Act is one of the most consequential economic steps ever,” Kindiki said.
He noted that the legislation establishes a ring-fenced investment fund financed through proceeds from oil and mineral sales to help shield the country from economic shocks, including global crises such as the recent conflict involving Iran.
According to Kindiki, part of the fund will be invested in commercially viable strategic infrastructure projects to generate returns, while 30 per cent of the proceeds will be reserved for future generations.
“Today, Kenya has joined the ranks of Norway, the UAE, Kuwait and Botswana, ensuring use of the proceeds from our natural resources benefits both the current and future generations,” he said.
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