Inside The National Infrastructure Fund Bill And Its Impact

The National Infrastructure Fund (NIF) Bill, 2026, has entered a critical phase, with public participation now open until February 20, 2026.

The bill marks a major shift from debt-funded development to an investment-led model, aimed at raising KSh 5 trillion to bridge Kenya’s annual infrastructure gap of approximately KSh 400 billion. 

The bill, sponsored by Majority Leader Kimani Ichung’wah, had its first reading in the National Assembly on February 12, 2026.
Petitioners have moved to the High Court to block the fund, arguing it was initially established through executive action rather than a proper legislative framework.

Treasury CS John Mbadi has since applied to lift conservatory orders that halted its setup.The Finance Committee, led by Kuria Kimani, has already held hearings in Homabay, Mombasa, Kilifi, and Kwale, where citizens expressed concerns over accountability and the potential for corruption. 

The fund is designed to operate as a limited liability company governed by an independent board.Funding will be anchored by proceeds from the privatization of major state assets, including:Kenya Pipeline Company (KPC): Expected to raise KSh 106 billion through an IPO.

Through leverage, the government estimates that every KSh 1 invested by the state will attract KSh 10 in additional private and institutional financing. 

The NIF is intended to provide long-term, “ring-fenced” funding for several massive projects: SGR extension to Malaba (Ruto insists this must not be funded via loans), dualling 2,500 km of highways, and the Nairobi Railway City.

Construction of 50 mega dams to bring 2 million acres under irrigation, and the Loosuk–Lessos power transmission line.

By Anthony Solly