Parliament Approves National Infrastructure Fund Bill
News Updated: 06 March 2026 08:40 EAT
Kenya National Assembly sitting
Kenya’s National Assembly has passed the National Infrastructure Fund Bill, 2026 after the legislation cleared its third reading, paving the way for the establishment of a major financing vehicle for large-scale development projects across the country. The bill now awaits presidential assent before it becomes law.
The proposed law seeks to establish the National Infrastructure Fund, a structured financing mechanism aimed at mobilising resources for critical infrastructure development. The bill was sponsored in Parliament by National Assembly Majority Leader Kimani Ichung’wah.
The fund is expected to raise capital from multiple sources including government allocations, private investors, development partners, loans, grants and institutional investors such as pension funds. The goal is to create a sustainable funding stream for national development projects.
Government projections indicate the fund could mobilise up to Sh5 trillion to finance infrastructure expansion in sectors such as transport, energy, irrigation and water. These sectors are considered key drivers of economic growth and industrial expansion.
Projects expected to benefit include expansion of major highways, modernisation of ports and airports, and the extension of the Standard Gauge Railway to the border town of Malaba.
Officials say the fund is designed to reduce reliance on public borrowing and heavy taxation to finance development. By attracting long-term capital, the government hopes to accelerate stalled infrastructure projects.
Part of the fund’s capitalisation may also come from proceeds generated through the partial sale of selected state-owned enterprises, with the money ring-fenced specifically for infrastructure investments.
Supporters argue the initiative will unlock financing for projects that have historically stalled due to budget constraints and help fast-track Kenya’s long-term development agenda.
However, critics warn the fund could face risks of political interference and weak oversight if strong governance safeguards are not implemented.
If signed into law by the President, the National Infrastructure Fund will become one of the government’s key financial instruments aimed at accelerating national infrastructure development and economic transformation.
Tags: Moses Wetangula National Assembly Committee National Government Parliament Signs Media Kenya Limited Signsmedia Signstv Signstvkenya
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FELIX MAKONA
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