Who Will Manage the Ksh5 Trillion National Infrastructure Fund?
One of the biggest issues surrounding the proposed National Infrastructure Fund is the question of leadership and oversight.
With the fund expected to control an amount of money nearly equal to Kenya’s national budget, many observers are keen to understand who will be responsible for managing such a significant public investment vehicle and how decisions will be made.
In December 2025, the Cabinet approved the establishment of both the National Infrastructure Fund and the Sovereign Wealth Fund as part of broader government efforts to strengthen the country’s financial position.
The move is aimed at reducing reliance on external borrowing while creating new ways of raising money locally to support development.
The proposed fund, estimated at Ksh5 trillion, is expected to play a major role in financing large infrastructure projects that are considered essential for long-term economic growth.
Understanding the National Infrastructure Fund
In simple terms, the National Infrastructure Fund is designed as a financial platform that will support the planning, financing, construction, and maintenance of major national development projects.
Instead of depending heavily on loans or increased taxation, the government intends to use the fund to mobilise capital in a more sustainable and structured way.
The fund is being introduced through the National Infrastructure Fund Bill, 2026, sponsored by Majority Leader Kimani Ichung’wah.
The proposed law seeks to create a stable and predictable system for financing infrastructure projects that often require large amounts of money and long implementation periods.
One of the unique aspects of the fund is that it will operate as a limited liability company rather than as a traditional government department.
This means the fund will have its own legal identity, governance framework, and financial reporting structure, similar to how a corporation operates. The intention behind this approach is to allow professional management, improve efficiency, and increase investor confidence.
Under the proposed framework, money generated from the privatisation of state-owned assets and income from mature public investments will be set aside specifically for infrastructure development.
These funds will serve as initial capital, helping to establish the fund’s financial base and attract additional investment from private sector partners and institutional investors.
Governance and Management Structure
A strong governance system has been identified as one of the most critical elements of the fund’s success. The management structure is designed to ensure professional oversight while maintaining accountability in the use of public resources.
At the top of the structure will be a Board of Directors responsible for setting the strategic direction of the fund. The board will oversee resource mobilisation, approve investments, and ensure that governance and risk management systems are properly implemented.
The board is expected to include an independent chairperson, the Cabinet Secretary for the National Treasury or a representative, four independent directors, two directors with senior experience in development banking, and the Chief Executive Officer who will serve as an ex officio member.
Independent and banking-experienced directors will be recruited through a competitive and merit-based process to ensure professionalism and competence.
Board members will serve fixed terms and must meet strict eligibility requirements, including professional qualifications, leadership experience, and compliance with public integrity standards.
Among their responsibilities will be setting investment policies, approving major projects, establishing risk controls, defining performance targets, and appointing the fund’s CEO.
The CEO will handle the day-to-day operations of the fund, implement board decisions, and lead a professional team responsible for investment management and operational execution.
In addition, an audit committee will be established to oversee financial reporting, internal controls, risk management systems, and coordination with external auditors. This structure is intended to enhance transparency and reduce the risk of misuse of funds.
How Investments Will Be Made
The investment process under the National Infrastructure Fund is expected to follow strict evaluation procedures before any money is committed.
Projects will undergo feasibility studies, financial assessments, and detailed planning to ensure that investments are viable and capable of delivering long-term value.
This approach aims to prevent resources from being directed toward projects that may not generate economic benefits or that risk becoming abandoned infrastructure.
By prioritising projects that are commercially viable or financially sustainable, the fund hopes to reduce pressure on public debt while improving the efficiency of infrastructure spending.
In the transport sector, the fund could support the expansion of highways, improvement of railway networks, and development of logistics systems that help farmers and manufacturers access markets more easily.
In the energy sector, investments may focus on expanding electricity generation and improving distribution networks to support industrial growth and economic competitiveness.
Agriculture and water resource management are also expected to benefit. Possible investments include irrigation projects, water storage facilities, and systems designed to strengthen food security while improving resilience against climate-related challenges.
Focus on Accountability and Transparency
The government has emphasised that the National Infrastructure Fund will operate under clear governance, transparency, and accountability principles.
The goal is to ensure that public resources are managed responsibly and that investment decisions are based on economic value and national development priorities.
Ultimately, the success of the fund will depend largely on the strength of its management and oversight structures.
With such a large financial commitment at stake, the individuals tasked with leading the fund — from the board to the executive management — are expected to play a decisive role in determining whether the initiative delivers lasting infrastructure growth and economic benefits for the country.
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