Parliament Debates Bill to Create Ksh.5 Trillion National Infrastructure Fund

By : Mweru Mbugua

Parliament is considering a bill that seeks to establish a National Infrastructure Fund aimed at mobilising up to Ksh.5 trillion to finance major development projects across the country

The National Infrastructure Fund Bill, 2026, sponsored by National Assembly Majority Leader Kimani Ichung’wah, proposes a new investment-driven model to fund infrastructure, reducing dependence on public debt and taxation

If enacted, the fund will channel resources into key sectors including roads, railways, ports, irrigation and energy. Among the projects earmarked as potential beneficiaries are the Loosuk–Lessos power transmission line, the Galana-Kulalu irrigation project, the Rironi–Naivasha–Mau Summit highway and the extension of the Standard Gauge Railway (SGR) to Malaba

President William Ruto has previously stated that the SGR extension to Malaba should not be financed through loans, underscoring the need for alternative funding mechanisms for large-scale infrastructure

Under Clause 6 of the bill, the fund would operate as a limited liability company governed by a Board of Directors. The board would comprise a chairperson, the Cabinet Secretary for the National Treasury or a representative, four independent directors, and a Chief Executive Officer serving as an ex-officio member

Although directors would be recruited through a competitive process, they would be appointed by the Treasury Cabinet Secretary through a gazette notice. The Cabinet Secretary would also sign performance contracts with the board and evaluate the fund’s performance

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The governance structure further requires the fund to submit its reports to the Cabinet Secretary, who would then forward them to the Cabinet and the National Assembly. Disclosures would also be published on the National Treasury website

The proposal has sparked debate over the level of control vested in the National Treasury and the safeguards available to prevent misuse of funds

The discussion comes against the backdrop of previous infrastructure-related controversies and stalled projects, including the Arror and Kimwarer dams and delayed SGR expansions, which have raised concerns about accountability in public financing

Members of the public have been invited to submit their views on the bill before February 20, 2026, as Parliament continues deliberations on the proposed legislation