MUGUN: Why the National Infrastructure Fund is a game-changer

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Kenya stands at a defining moment in its development journey. The launch and formal establishment of the National Infrastructure Fund (NIF) by President William Ruto is not just another policy announcement—it is a bold, forward-looking intervention that can fundamentally change how our country finances and delivers transformative infrastructure.

As the Chief Executive Officer of the National Water Harvesting and Storage Authority (NWHSA), I warmly welcome the National Infrastructure Fund and commend the Cabinet for approving it. With State House endorsement and a clear mandate to mobilize up to Sh5 trillion for priority projects, the NIF represents a long-overdue shift from fragmented, debt-heavy infrastructure financing to a sustainable, investment-driven model.

For decades, Kenya has had ambitious infrastructure plans—mega dams, irrigation schemes, transport corridors and energy projects—many of which stalled not because of poor planning, but due to persistent funding gaps.

The NIF addresses this challenge head-on. By operating as a limited liability company, it becomes a central financial engine that aligns public resources with national priorities, attracts private and institutional capital, and reduces our overreliance on traditional borrowing and annual budget allocations.

In my view, this Fund is a cornerstone in making Kenya truly self-reliant and capable of delivering mega infrastructure projects at scale. The idea is simple but powerful: create public seed capital, use it strategically, and leverage it to attract far larger pools of investment. This is how successful economies build—by letting assets work for the country.

From a water sector perspective, the implications are profound. For the first time, we have a practical and sustainable model to finance and maintain major water infrastructure without leaning on loans, grants or concessional borrowing. Under this framework, once the government invests in building a mega dam, NWHSA can commercialize that infrastructure responsibly.

Water will be sold to an off taker. This off taker can be a local water and sewerage company, a private firm or an organized group within the community which in turn supplies households, industries and farmers. The revenue generated does not disappear into recurrent expenditure—it is banked into the National Infrastructure Fund. This creates a virtuous cycle. Revenues from existing water infrastructure finance new dams and water works. Over time, the country moves from dependency to investment, from borrowing to lending.

Looking ahead 40 to 50 years, I firmly believe Kenya will be so well built, so financially grounded, that we will not only invest confidently at home but also extend loans beyond our borders. In extending loans beyond our borders, even our businessmen and contractors can also benefit from working abroad in undertaking investment to another nation. This means we are also creating a finance or commercial engagement with another country, giving us leverage to secure more funds through interest by signing commercial agreements, raising our GDP, and making life easier and more comfortable for all.

The benefits of the National Infrastructure Fund go well beyond water. It will provide sustainable financing for roads, energy, irrigation, sanitation, transport and logistics, digital networks and other strategic sectors.

By crowding in private capital—potentially up to ten times the initial public investment—the Fund will accelerate the delivery of mega projects that have long constrained industrial growth, trade and regional connectivity. Equally important, the NIF ring-fences proceeds from privatization and asset monetization, ensuring that these resources are reinvested directly into infrastructure rather than absorbed by day-to-day government spending. This discipline is essential if we are to close our infrastructure gap and unlock broad-based economic transformation.

For agriculture and food security, the impact will be tangible. Planned construction of both mega and small dams will expand irrigation, stabilize food production in arid and semi-arid areas, and protect communities from the devastating effects of droughts and floods.

At NWHSA, we are ready to play our part. As part of our mandate to enhance national water storage and security, we manage and develop critical infrastructure across the country. These include large and medium dams such as Chemususu in Baringo, Kiserian in Kajiado, Siyoi Muruny in West Pokot, Maruba in Machakos, Peace (Naku’Etum) in Turkana, and Kirandich in Baringo. In addition, we oversee more than 1,100 small dams and water pans spread across arid and semi-arid regions, providing lifelines for domestic use, irrigation, livestock and conservation. These assets are not just engineering structures; they are engines of resilience, productivity and national development.

With the National Infrastructure Fund in place, we now have a credible pathway to scale them up, sustain them, and ensure they serve generations to come.

The NIF is a game-changer. It signals that Kenya is ready to finance its future with confidence, creativity and discipline. I am convinced that if we implement it faithfully and transparently, history will record this moment as the turning point when Kenya chose long-term prosperity over short-term fixes.