When the government established the National Infrastructure Fund (NIF), it pitched the initiative as Kenya's ticket to first-world status in record time, mirroring the economic rise of Asia's four tigers: Singapore, South Korea, Taiwan, and Hong Kong.
Up to Sh5 trillion is expected to flow into the fund over the next decade from private investors, the sale of state corporations, and investment returns. These resources are intended to finance commercially viable national infrastructure projects, including roads, rail, aviation, ports, and energy systems.
But now, experts warn that the fund’s implementation, following President William Ruto’s assent to the National Infrastructure Fund Bill 2026 on March 9, presents a critical test, with early concerns emerging.
Speaking on Spice FM on Wednesday, March 18, development economist Sheilah Olang flagged the fund’s limited involvement of oversight bodies,as a vulnerability to corruption.
"The Consolidated Fund is run differently. You have to go through parliament for budgetary allocations and approvals. While sidestepping this process may mean efficiency, it eliminates proper oversight," she said.
She drew a cautionary parallel with Malaysia. "We must be certain that the assets sold to invest in this fund are valued properly. Malaysia had a similar programme which ended up being the biggest conduit for corruption.”
Keep Reading
- Ruto urges Kenyans to report hospitals that charge SHA members
- Alarm as logging ban lifted in Mau Forest
- Ruto directs Kemsa to supply medicine directly to hospitals
- How Ruto-Trump health deal risks patient data
The National Assembly, in a statement after passing the Bill sponsored by Majority Leader Kimani Ichungwa, said it retains oversight through a clause requiring approval of an Investment Policy from the fund’s Council and Board, the two-tier governance structure.
Questions also surround how viable projects will be chosen and whether regional balance will be maintained.
Treasury Cabinet Secretary John Mbadi has said only projects generating sufficient returns for investors will be considered, ruling out social amenities like stadiums.
"The fund is designed to attract investors and will only cover a small percentage of projects, as the private sector contributes the bulk of the money. How will the state attract investors into projects that are suddenly deemed no longer viable? Who covers the losses?" Olang asked.
Executive influence over the fund’s governance has also raised eyebrows.
The nine-member Governing Council includes the Treasury CS, the Central Bank of Kenya Governor, and six independent members appointed by the president for three-year terms.
The eight-member Board of Directors is appointed by the Council, except for the Chief Executive Officer, who is appointed by the Board.
Even as the blueprint moves to implementation, doubts persist over whether Kenya's institutions are equipped to match the ambition behind it.
"We have the same ambitions as Singapore but not their institutional readiness. We don't need to have a fund just because they do. Their funds manage state assets, whereas we sell them instead," says Olang.
Those doubts deepened after President Ruto announced the expansion of Jomo Kenyatta International Airport as the NIF’s first project, a decision seen as executive interference in a process meant to be led by the Council.
Meanwhile, the sale of government shares in Kenya Pipeline Company raised Sh106 billion, deployed as seed capital for the fund, with a potential divestiture of shares in Safaricom also under consideration.