Cabinet Approves Sh5 Trillion Infrastructure And Sovereign Wealth Funds
News Updated: 15 December 2025 21:39 EAT
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The Cabinet has approved the establishment of a Sh5 trillion National Infrastructure Fund and a Sovereign Wealth Fund in a major move aimed at reducing reliance on taxation and borrowing while strengthening long-term economic stability. The decision is intended to unlock sustainable financing for development and ensure prudent management of revenue from Kenya’s natural resources.
The National Infrastructure Fund will serve as a central vehicle for financing priority projects in sectors such as roads, energy, water, agriculture and trade. By mobilising domestic capital, attracting private investment and monetising mature public assets, the fund is expected to ease pressure on public debt and reduce the need for frequent tax increases.
Alongside it, the Sovereign Wealth Fund will provide a structured framework for managing income generated from mineral and petroleum resources, dividends from state investments and proceeds from privatisation. The fund is designed to promote transparency, fiscal discipline and inter-generational equity by safeguarding resource revenues for both current and future use.
Cabinet said both funds will operate under strong governance and accountability mechanisms, with professional management to ensure efficiency and public confidence. Officials noted that proper oversight will be critical in preventing mismanagement and maximising returns from public resources.
The approval of the two funds marks a significant shift in Kenya’s public finance strategy, as the government seeks alternative ways to fund development, stabilise the economy and support growth without increasing the tax burden on citizens or expanding public borrowing.
Tags: Cabinet Signstvkenya Government Of Kenya National Government
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FELIX MAKONA
FACT FINDER AND DATA DRIVEN JOURNALIST. DATA MINING AT IT'S BEST. GET FACTS RANGING FROM MATTERS DISABILITY AND INCLUSION, POLITICS, ECONOMY, SPORTS AND GENERAL NEWS AROUND THE WORLD