By John Mutiso
President William Ruto, on Thursday, November 20, highlighted his intention to utilise the National Infrastructure Fund (NIF) to finance the construction and expansion of key infrastructure projects nationwide.
Speaking during the State of the Nation Address at the National Assembly, President Ruto said the country cannot continue funding essential infrastructure through borrowing or increasing taxes.
He also noted that Kenya cannot afford to postpone the construction of essential infrastructure, saying it is important for the country’s future.
“There is a need to be innovative in the use of national revenues at our disposal, in the deployment of national assets available to us, and in creating public-private partnerships that will crowd in the enormous pool of private sector resources available regionally and globally.
“This is why we will establish the National Infrastructure Fund, whose architecture will be underpinned by the reforms in the Government-Owned Enterprises Bill, passed by this August House, that I will be signing into law tomorrow,” said Ruto.
The Head of State also said the fund will provide a framework to innovatively scale up resources to match the country’s ambition.
“It will fulfil our manifesto commitment to rebuild Kenya’s infrastructure while reducing reliance on debt. We will do this by using budgeted resources prudently and introducing a financing architecture that leverages capital markets, diversifies ownership through the unlocking of national assets through privatisation, and uses PPP frameworks to channel private capital into public priorities,” he stated.
NIF is a protected pool of money that is separate from the normal annual government budget. The fund will be used to finance large infrastructure projects without interruptions from year-to-year budget changes.
It will be funded by taxes, proceeds from privatisation, contributions from development partners and investments from domestic and international investors.
The fund is also structured to attract private investors, global capital, pension funds, SACCOs and insurers.
According to President Ruto, the fund solves the problem of stalled or stop–start projects by ensuring big projects have guaranteed financing for all years, funding does not depend on unpredictable yearly budgets, and projects can be planned for 10 to 30 years.
“The National Infrastructure Fund is therefore more than a financing tool. It is a generational strategy, preserving value, mobilising capital, accelerating delivery, and ensuring Kenya becomes stronger, wealthier, and more competitive,” he stated.
NIF will be used to fund infrastructure projects such as roads, energy plants, irrigation systems, ports, rail, water, sanitation, and digital networks.
Among the roads set to be dualled under the fund include the 170-kilometre Rironi–Naivasha–Nakuru–Mau Summit road, 58-kilometre Rironi–Maai Mahiu–Naivasha road, Muthaiga– Kiambu–Ndumberi road, Machakos Junction–Mariakani, Mau Summit–Kericho–Kisumu, Kisumu–Busia and Mau Summit–Eldoret– Malaba.
Others are: Athi River–Namanga, Karatina–Nanyuki–Isiolo, Makutano–Embu–Meru—Maua, Mtwapa–Malindi, Mombasa-Lunga Lunga, Kericho—Kisii—Migori—Isebania, Nakuru— Nyahururu—Karatina and Kisii—Oyugis—Ahero road.
NIF will further fund the dualling of the Northern Bypass, James Gichuru Road, Bomas—Karen—Ngong, Bomas— Ongata Rongai—Kiserian, Ngong—Isinya and Naivasha–Kikuyu road.
The infrastructure drive will include extending the Standard Gauge Railway (SGR) from Naivasha to Kisumu and eventually to Malaba beginning in January 2026.
The NIF model has been used in other countries such as Australia, Singapore, the United Arab Emirates, Indonesia, South Africa, India, Canada and Ghana.
