Okoa Uchumi Coalition Backs Legal Anchoring of National Infrastructure Fund but Raises Concerns

The Okoa Uchumi Coalition, a civil society platform advocating for solutions to Kenya’s public debt crisis, has welcomed efforts to anchor the proposed National Infrastructure Fund (NIF) in law through the National Infrastructure Fund Bill, 2026.

The coalition spoke during ongoing stakeholder engagements on the Bill before the Departmental Committee on Finance and National Planning of the National Assembly of Kenya.

The group said placing the Fund under legislation is a positive step in addressing concerns raised in Petition E835 of 2025, which challenged the establishment of the Fund outside the constitutional and statutory framework.

“This legislative approach is consistent with Article 206 (1)(a) of the Constitution which states that a national government fund other than one established by the Constitution may only be created through an Act of Parliament or under the Public Finance Management (PFM) Act,” the team led by Mr. Alexander Rithi, Head of Programs at TISA, told the Committee.

However, the coalition cautioned that legality alone does not guarantee constitutional compliance. It argued that the Bill’s provisions must fully align with constitutional principles of public finance, including transparency, accountability, and prudent use of public resources.

The group said the Bill does not clearly define the categories of infrastructure to be financed or explain how the Fund will relate to existing public investment management systems.

“The Bill at hand, while placing the proposed Fund on a statutory footing, still makes a few steps. It does not specify categories of infrastructure to be financed and the institutional relationship between the Fund and existing public investment management processes,” the coalition observed.

It warned that this creates uncertainty on whether the Fund will operate within the existing public investment framework or as a parallel financing structure.

The coalition also called for a clear definition of the term “catalytic infrastructure” and proposed that Parliament approve the list of qualifying projects.

“Without a specific definition of ‘catalytic’ or criteria for what qualifies, it gives the Board or Cabinet Secretary for National Treasury unconstrained discretion to designate any project as catalytic, bypassing normal parliamentary appropriation and procurement scrutiny,” the group said.

On governance, Okoa Uchumi urged lawmakers to expand Parliament’s role in appointing Board members. It proposed amendments to require that shortlisted directors be vetted and approved by the relevant National Assembly Committee before formal appointment.

The coalition argued that this would prevent cronyism and promote merit-based appointments. It said the Fund could manage public resources worth hundreds of billions of shillings, and therefore its directors should face the same parliamentary scrutiny as senior public officials.

The group also proposed that Board members’ remuneration be subject to approval by the Salaries and Remuneration Commission (SRC) and the National Assembly, arguing that leaving the matter to the Cabinet Secretary could be unconstitutional.

Committee Member Peter Kaluma supported the call for oversight on remuneration, saying it should not be determined by the Cabinet Secretary, who is also a designated Board member.

However, some lawmakers opposed the coalition’s proposal to disqualify individuals who have served as transaction advisors, underwriters, or participated in government divestiture transactions in the past seven years.

Session Chair David Mboni termed the proposal discriminatory, saying such individuals bring valuable expertise to the Board.

“We require the experience and expertise of such people to enrich the decisions of the Board,” he said.

Kaluma also expressed concern that the proposal could unfairly exclude qualified professionals, noting that divestiture processes involve many institutions and individuals.

The stakeholder consultations on the National Infrastructure Fund Bill continue as lawmakers consider proposed amendments before tabling the final version in the House.