Kenya’s National Assembly of Kenya has passed the National Infrastructure Fund Bill, bringing the proposed law a step closer to implementation.
The bill now awaits approval from William Ruto, whose assent will make it officially become law.
The legislation was introduced by Majority Leader Kimani Ichung'wah and successfully went through its third reading on Thursday, March 5.
Members of Parliament voted for the bill through the traditional “yes or no” process presided over by the Speaker.
A large majority of lawmakers supported the bill, reflecting strong political backing for the plan to mobilise resources for major development projects across the country.
If signed into law, the legislation is expected to introduce a new model of financing large infrastructure projects in Kenya.
The proposed National Infrastructure Fund (NIF) is designed to raise nearly Ksh5 trillion over the next ten years. Its main objective is to shift infrastructure financing from heavy reliance on government borrowing to an investment-driven model that attracts funds from both local and international investors.
During the earlier stages in Parliament, the bill went through several legislative steps including the first reading, committee review, and second reading debates. The parliamentary Finance Committee later presented its recommendations supporting the bill before it proceeded to the final stage.
Public participation also played a role in shaping the legislation. Stakeholders such as the Institute of Public Finance and the Institute of Certified Public Accountants of Kenya submitted views that influenced the final structure of the fund.
According to the bill, the fund will operate as a corporate body with the legal authority to own property, sign contracts, and invest in infrastructure projects. However, it will not be allowed to borrow money or take credit against its own balance sheet.
The fund will be managed by a seven-member Board of Directors, chaired by an independent director. The Cabinet Secretary of the National Treasury of Kenya will also sit on the board to ensure government oversight and alignment with national economic policies.
Funding for the initiative will come from multiple sources, including private investors, pension funds, collective investment schemes, sovereign wealth funds, and climate financing institutions.
This structure aims to reduce pressure on public borrowing while ensuring continued investment in roads, energy projects, and other key infrastructure.
Experts say the National Infrastructure Fund could significantly transform Kenya by creating a sustainable financing framework that supports long-term development.
The passage of the bill marks a major step toward modernising how the country finances its infrastructure and strengthening economic growth over the coming decade.
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