Ruto Signs Sovereign Wealth Fund Law to Preserve Kenya’s Resource Wealth for Future Generations
Kenya has taken a major step toward safeguarding its natural resource earnings after President William Ruto signed the Sovereign Wealth Fund Act, 2026 into law, creating a national investment fund designed to save and grow wealth generated from the country’s mineral and petroleum resources.
Speaking during the signing ceremony at State House, Nairobi, President Ruto described the new legislation as a landmark achievement that will ensure future generations benefit from the country’s natural resources instead of seeing the proceeds spent entirely by the current generation. He said Kenya must adopt a long-term approach to managing its wealth by investing part of the revenue earned from strategic national assets.
The new law establishes Kenya’s first sovereign wealth fund, providing a legal framework for collecting, managing and investing revenues from petroleum, minerals, selected public investments and part of the proceeds from government privatization programmes. The government says the fund will strengthen economic resilience, promote responsible resource management and support sustainable national development.
A key feature of the legislation is the requirement that 30 percent of mineral and petroleum revenues deposited into the fund be reserved for a Future Generations Fund. This portion will remain invested to create long-term wealth for Kenyans who will benefit from the country’s natural resources in the years ahead. The remaining resources will be allocated to economic stabilization measures and strategic development investments.
According to the government, the Sovereign Wealth Fund will also help cushion the economy during periods of financial uncertainty. Instead of relying entirely on annual budget allocations or borrowing, the fund is expected to provide an additional financial buffer during economic downturns while financing priority infrastructure and development projects.
President Ruto noted that countries rich in natural resources often struggle to convert those assets into lasting prosperity because revenues are consumed immediately without adequate savings. He said Kenya intends to avoid that pattern by creating an institution that protects national wealth while generating investment returns over the long term.
The Act further outlines governance structures intended to ensure accountability in the management of the fund. Investments will be made under an established legal framework aimed at protecting public resources and promoting transparency in how the money is managed.
Economists have welcomed the creation of the fund, saying it could help Kenya maximize the benefits of future oil and mineral discoveries while reducing dependence on public debt. They argue that if managed prudently, the fund could finance strategic projects, stabilize public finances during periods of economic volatility and create lasting wealth for generations to come.
The signing of the Sovereign Wealth Fund Act marks a significant shift in Kenya’s economic policy, placing greater emphasis on saving, investing and protecting revenues from natural resources rather than spending them immediately. The government believes the new framework will ensure that the country’s mineral and petroleum wealth becomes a lasting national asset capable of supporting both present and future generations.
