Francis Wambugu Irungu Kenya’s National Assembly on Thursday evening approved the National Infrastructure Fund Bill, 2026, in a historic vote that fundamentally transforms how the country will finance large-scale development projects. The landmark legislation is expected to mobilize approximately Ksh 5 trillion over the next ten years, transitioning the nation away from debt-dependent infrastructure financing toward a more sustainable, investment-driven model.
The Bill establishes the National Infrastructure Fund (NIF), a dedicated vehicle for channeling resources into critical sectors including transport, energy, water, irrigation, and digital connectivity. The Fund will further support the development of highways, railways, ports, agribusiness facilities, and other strategically significant national projects. Crucially, unlike Kenya’s historically borrowing-heavy approach to infrastructure, the NIF is structured to attract both public and private investment.
Following robust debate during the Second Reading and the consideration of amendments at the Committee of the Whole House, Majority Leader Hon. Kimani Ichung’wah hailed the Bill as the most consequential legislation passed by Kenya’s National Assembly since Sessional Paper No. 10, championed by the late Tom Mboya in 1965.
“Should this Bill pass through the Third Reading stage, it will be the most consequential piece of legislation ever enacted by this House, not only in the 13th Parliament, but in the history of independent Kenya,” he declared.
The Bill did encounter resistance from some lawmakers who raised concerns about executive overreach, particularly regarding the Treasury Cabinet Secretary’s role. In response, a series of safeguard amendments were introduced by the Departmental Committee on Finance and National Planning, chaired by Hon. FCPA Kuria Kimani, aimed at reinforcing transparency, parliamentary oversight, and professional governance.
Among the most significant changes is the creation of a Governing Council to provide strategic direction and serve as a protective layer for the Fund’s assets. The Council will be chaired by the Treasury Cabinet Secretary and include the Central Bank Governor, the Attorney-General, and six non-public sector professionals appointed by the President for three-year terms.
To shield the Fund from political interference, the Board of Directors was restructured to require four independent directors recruited through a competitive process. Board members must hold degrees in finance, engineering, or law, and possess at least ten years of relevant experience. Disqualification criteria were also introduced, barring individuals serving on other state corporation boards or holding certain criminal convictions.
Parliamentary oversight was significantly strengthened: The Treasury Cabinet Secretary must now submit the Fund’s Investment Policy to the National Assembly, which will have 90 days to approve, amend, or reject it.
Stiff penalties were also embedded into the law to deter financial misconduct. Any person found misappropriating funds faces a fine of at least Ksh 10 million, repayment of twice the misappropriated amount, or imprisonment of no less than five years.
“If you do not want to be subjected to these penalties, do not attempt to misappropriate this Fund,” Ichung’wah cautioned.
“The journey to Singapore has been crystallized,” the Majority Leader declared after the vote. “We have now put the roadmap to the first world.”
The Bill now awaits presidential assent from President William Ruto.
