Ruto proposes using KSh2.81 trillion pension funds for infrastructure

President William Ruto proposed directing KSh2.81 trillion from Kenya’s pension and collective funds toward infrastructure projects during his 9 March 2026 speech at State House.

The announcement came as he signed the National Infrastructure Fund Bill into law. Ruto highlighted potential uses for the money in airport expansions, roads, railways, dams and power plants.

He argued that the pension savings should serve not only retirees but also their children and future generations through strategic investments.

Ruto stated that KSh2.81 trillion is available from pension and other collective funds and this money can be used for national development.

The president noted that protecting pensioners’ savings remains a priority yet the funds can responsibly fuel development and economic opportunities. He urged close collaboration between the government, financial institutions and pension fund managers to maintain prudence and transparency.

Proposal details

Ruto explained how channeling funds into long-term projects such as housing, infrastructure and productive industries would grow the economy while ensuring ongoing returns for retirees. This creates a win-win situation where the savings remain secure and profitable ultimately benefiting communities nationwide.

The associated National Infrastructure Fund targets mobilising KSh5 trillion over the next decade for sustainable growth.

Health Cabinet Secretary Aden Duale endorsed the idea calling the KSh2.81 trillion domestic capital ideal for job creation and superior returns compared to Treasury bills.

Duale pointed out that Kenya’s rapidly expanding pension assets require innovative investment options to address infrastructure gaps and promote broader economic progress. Supporters add that these funds already back government securities.

However critics fear the proposal could jeopardise retirees’ savings by tying them to uncertain projects amid Kenya’s significant debt load.