Ruto signs landmark Sh5 trillion National Infrastructure Fund bill into law

The assent ceremony took place at State House, Nairobi, with Treasury Cabinet Secretary John Mbadi, National Assembly Speaker Moses Wetang’ula, and private sector leaders in attendance. The National Assembly passed the legislation on March 6 after extensive debate and amendments aimed at strengthening oversight and governance of the fund.

The National Infrastructure Fund is projected to mobilize nearly Sh5 trillion over the next decade to support highways, railways, ports, energy systems, and agribusiness infrastructure. Unlike past borrowing methods, the NIF introduces an investment-led model allowing both public and private sector participation. Funding will come from government allocations, private investment, privatisation proceeds, grants, and loans.

National Assembly Majority Leader Kimani Ichung’wah, who sponsored the bill, described it as one of Kenya’s most significant pieces of legislation. “The journey to Singapore has been crystallized. We have now put the roadmap to the first world,” he said, referring to President Ruto’s vision for modernizing infrastructure.

To ensure proper oversight, the law establishes a Governing Council chaired by the Treasury Cabinet Secretary, including the Central Bank Governor, Attorney-General, and six independent members appointed for three-year terms. The council provides strategic direction without interfering in daily operations, safeguarding board independence.

The board requires four competitively recruited independent directors with at least ten years of professional experience in finance, engineering, or law. The Chief Executive Officer will serve as Administrator, streamlining leadership. The Treasury Cabinet Secretary must submit the fund’s Investment Policy to Parliament within 90 days, which can be approved, amended, or rejected.

To deter misuse, violators face penalties including repayment of twice the misappropriated amount, fines of at least Sh10 million, or a minimum five-year prison term. The law defines “national infrastructure” broadly to include highways, railways, airports, seaports, and electricity generation, transmission, and distribution. Strategic commercial investments will be prioritized, while project preparation remains under existing frameworks such as the Public Private Partnership Act.

Experts say the legislation could accelerate Kenya’s long-term development agenda while reducing dependence on traditional debt financing.