High Court Blocks Establishment of Sh5 Trillion National Infrastructure Fund
News Updated: 24 December 2025 20:03 EAT
The High Court has issued conservatory orders stopping the establishment of the proposed Sh5 trillion National Infrastructure Fund (NIF), dealing a setback to the government’s plan to roll out the mega financing vehicle. The court barred the National Treasury and all state agencies from registering, operationalising or funding the proposed entity pending the hearing and determination of a constitutional petition.
The orders mean that no public funds can be committed to the NIF and no legal or administrative steps can be taken to formalise its existence until the case is fully heard. The court also restrained oversight institutions from approving or facilitating any transactions linked to the fund during the interim period.
The petitioners argue that the proposed fund is unconstitutional, stating that a national public fund can only be established through legislation passed by Parliament or the Constitution, not through executive action or registration as a corporate entity. They contend that the process adopted by the government violates principles of public finance, accountability and parliamentary oversight.
The National Infrastructure Fund had been presented by the government as a key pillar of a Sh5 trillion development agenda, aimed at mobilising long-term financing for major infrastructure projects, including roads, energy and water investments, while reducing reliance on public debt.
With the conservatory orders now in force, the fate of the fund will be determined after the High Court hears submissions from both the petitioners and state respondents. The ruling will have significant implications for how large public financing vehicles are created and managed under Kenya’s constitutional framework.
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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