[PHOTOS] Ruto assents to National Infrastructure Fund Bill

President Ruto using a desk seal press, to put an official stamp to the National Infrastructure Fund bill on March 9, 2026./PCS

President William Ruto has signed the National Infrastructure Fund Bill into law, marking what he described as a turning point in how Kenya finances major development projects.

The law, which was signed at State House, Nairobi establishes a national fund designed to mobilise money for large-scale infrastructure such as roads, railways, ports, energy projects, housing and irrigation.

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The National Infrastructure Fund is a financing mechanism that allows the government to raise long-term capital from domestic sources, including pension funds, institutional investors and proceeds from privatisation of state assets, to invest in development projects. Its main goal is to reduce over-reliance on foreign loans while accelerating infrastructure growth.

According to President Ruto, Kenya requires about $4 billion annually to meet its infrastructure needs, a gap that has historically been financed largely through external borrowing.

The new law seeks to change this by tapping into local savings and investments to finance development, while also addressing challenges such as high borrowing costs and currency risks associated with foreign loans.

The fund will initially be capitalised using proceeds from the Kenya Pipeline Company initial public offering, which raised Sh106 billion, with the government planning to leverage the capital to mobilise up to Sh1.2 trillion for infrastructure projects.

The government says the fund will operate under strict governance structures, including oversight by a governing council and Parliament, to ensure transparency and accountability in the use of public resources.