Ruto engages IFC on plan to mobilise Sh5 trillion for National Infrastructure Fund

President William Ruto holds a meeting with the International Finance Corporation on February 24, 2026 at State House / PCS

President William Ruto has held talks with the International Finance Corporation (IFC) as the government moves to establish a National Infrastructure Fund aimed at attracting large-scale investment.

The President said Kenya is working closely with the IFC to identify global best practices that will enable the country to attract multilateral and private sector capital at scale.

According to Ruto, the fund is expected to mobilise up to Sh5 trillion to finance the country’s ambitious infrastructure programme and accelerate its push toward first-world economic status.

President Ruto noted that the IFC’s technical expertise will be critical in building a strong and credible financing vehicle capable of unlocking long-term funding for priority projects.

The meeting at State House Nairobi was attended by the IFC team led by Vice-President for Africa Ethiopis Tafara and Vice-President for Products and Clients Mohamed Gouled.

Kenya is preparing to launch a National Infrastructure Fund (NIF) as part of a broader strategy to mobilise capital for roads, energy, irrigation, transport and other priority sectors critical to economic transformation.

The fund is intended to support the country’s ambition to transition into a developed economy while easing pressure on public debt.

Ruto has linked the proposed fund to a wider reform agenda that includes asset sales and the establishment of a sovereign wealth vehicle, positioning infrastructure investment as a central pillar of Kenya’s long-term growth strategy.

The government has argued that the fund will help unlock financing without relying solely on traditional borrowing.

An infrastructure fund is a pooled investment vehicle created to finance, build, upgrade or operate long-term physical assets that underpin economic activity.

These assets typically include highways, ports, railways, power generation plants, water systems, irrigation schemes, airports and digital infrastructure.

According to World Bank blogs and guidance notes on public infrastructure financing, such funds are designed to mobilise large amounts of capital and deploy it efficiently into projects that require long investment horizons and high upfront costs.

Infrastructure funds may be fully public, fully private, or structured as hybrid vehicles that combine public capital with private and institutional investment.

What distinguishes infrastructure funds from traditional government spending is their focus on financial sustainability, professional management and the ability to attract non-government capital, particularly from pension funds, insurers and development finance institutions.

Kenya’s proposed National Infrastructure Fund is expected to follow a hybrid model that combines public anchor capital with private and institutional investment.

According to Reuters and reporting by the Financial Times, the government plans to use proceeds from selected state asset sales to capitalise the fund.

This approach is intended to free up value locked in public enterprises while redirecting resources toward new infrastructure development.

The fund is expected to support priority sectors such as energy generation and transmission, transport infrastructure, irrigation and water systems, all of which are considered essential for industrial growth, food security and job creation.

Government officials have presented the fund as a mechanism to finance development without significantly increasing Kenya’s public debt, which has come under pressure in recent years.

By sharing risks with private investors and spreading costs over longer periods, the fund aims to reduce immediate fiscal strain.