The National Infrastructure Fund Act, 2025 establishes a major institutional platform for financing large scale national infrastructure through structured capital mobilization and disciplined asset monetization. Presidential assent has formalized the legal framework required to operationalize a national infrastructure investment vehicle capable of mobilizing long horizon capital at scale. The Fund provides a structured pathway for financing priority national infrastructure while strengthening fiscal sustainability and expanding the country’s development capacity over the coming decade.

Kenya’s infrastructure requirements continue to exceed traditional public financing capacity. The country faces an estimated annual infrastructure financing gap of between USD 4 billion and USD 5 billion, equivalent to approximately KES 580 billion to KES 725 billion each year. At the same time, Kenya’s public debt portfolio stood at approximately KES 11.5 trillion by mid 2025, creating pressure to expand alternative financing mechanisms capable of supporting development without increasing sovereign borrowing exposure. The National Infrastructure Fund therefore introduces a structured capital mobilization framework designed to attract long term institutional investment into national infrastructure assets.

The Act establishes the Fund as a Limited Liability Company wholly owned by the Government of Kenya, operating under corporate governance standards designed to attract institutional investors including pension funds, development finance institutions, sovereign wealth funds, and global infrastructure investors. The Fund functions as a national investment platform that aggregates capital and deploys it into commercially viable infrastructure projects capable of generating predictable revenue streams.

The national investment program supported by the Fund targets approximately KES 5 trillion in infrastructure investment over the next decade. Initial capitalization will be supported through strategic monetization of mature public assets, including partial divestment of selected state holdings. Early asset transactions are expected to mobilize approximately KES 347.5 billion in seed capital, equivalent to about USD 2.7 billion, which will serve as the foundational equity base of the Fund.

This capital base will support a structured leverage model designed to crowd in private investment at scale. Through a targeted leverage ratio of approximately 1:10, each KES 1 of public equity capital is expected to catalyze up to KES 10 of private sector investment, significantly expanding the national infrastructure financing envelope while maintaining fiscal discipline.

Capital mobilized through the Fund will be directed toward strategic infrastructure sectors with strong economic multiplier effects. Priority investment areas include transport infrastructure, water storage and irrigation systems, electricity generation and transmission infrastructure, and digital and industrial infrastructure platforms. These investments aim to strengthen regional logistics capacity, improve agricultural productivity, support industrial expansion, enhance climate resilience, and expand national competitiveness within regional and global markets.

The National Infrastructure Fund therefore establishes a disciplined national investment platform capable of mobilizing long term capital for infrastructure development while strengthening fiscal sustainability. Through structured governance, transparent oversight mechanisms, and commercially viable investment models, the Fund positions Kenya to accelerate infrastructure delivery while expanding the country’s productive asset base and long term economic growth potential.

 A KES 5 Trillion Strategic Framework for National Transformation

The National Infrastructure Fund Act, 2025 establishes a new national financing architecture for large scale infrastructure development across Kenya. Presidential assent has now formalized the legal framework required to operationalize a national investment platform capable of mobilizing long term capital for infrastructure delivery. The Act creates a structured pathway for financing strategic infrastructure while strengthening fiscal discipline and expanding the country’s long term development capacity.

Kenya’s infrastructure requirements continue to exceed traditional public financing resources. The country faces an estimated annual infrastructure financing gap of between USD 4 billion and USD 5 billion, equivalent to approximately KES 580 billion to KES 725 billion each year. At the same time, Kenya’s public debt portfolio stood at approximately KES 11.5 trillion by mid 2025, increasing the urgency for sustainable financing mechanisms that expand infrastructure investment without increasing sovereign borrowing exposure.

The National Infrastructure Fund therefore introduces a capital mobilization framework designed to attract institutional investment into national infrastructure assets. The Fund is established as a Limited Liability Company wholly owned by the Government of Kenya, operating under corporate governance standards that support participation by domestic pension funds, development finance institutions, sovereign investors, and global infrastructure funds seeking stable long term returns.

The national investment program anchored in the Fund targets approximately KES 5 trillion in infrastructure investment over the next decade. Initial capitalization will be supported through strategic monetization of mature public assets, including partial divestment of selected state holdings. Early transactions are expected to mobilize approximately KES 347.5 billion in seed capital, equivalent to roughly USD 2.7 billion, forming the equity foundation of the Fund.

This capital base supports a structured investment model designed to crowd in significantly larger volumes of private capital. The Fund applies a target leverage ratio of approximately 1:10, enabling each KES 1 of public capital to mobilize up to KES 10 of private investment. This structure expands the national infrastructure financing envelope while maintaining fiscal discipline.

Capital mobilized through the Fund will be directed toward strategic infrastructure sectors that generate strong economic multiplier effects across the economy.

• Transport Infrastructure Development

Investment programs target the dualling of approximately 2,500 kilometers of highways, expansion of national road connectivity through tarmacking of about 28,000 kilometers of roads, and extension of the Standard Gauge Railway toward Malaba to strengthen regional freight connectivity along the Northern Corridor.

• Water Security and Irrigation Infrastructure

The national infrastructure program includes development of approximately 1,250 dams, comprising 50 large dams, 200 medium dams, and around 1,000 smaller water storage facilities. These investments are designed to support irrigation expansion targeting approximately 2.5 million acres of irrigated land, strengthening agricultural productivity and improving climate resilience.

• Energy Infrastructure Expansion

The investment framework supports expansion of national electricity generation capacity toward approximately 10,000 megawatts, strengthening energy security while supporting industrial growth, digital infrastructure expansion, and rising urban electricity demand.

Through this institutional framework, the National Infrastructure Fund Act, 2025 establishes a disciplined national investment platform capable of mobilizing long horizon capital for infrastructure development. The Fund strengthens national productivity, supports regional trade integration, and expands the country’s long term economic growth capacity through commercially viable infrastructure assets.

Institutional Framework and Governance Structure

The National Infrastructure Fund Act, 2025 establishes a governance architecture designed to support professional capital management, investor confidence, and long term institutional stability. The Fund operates as a national investment platform that combines public ownership with corporate governance discipline, enabling large scale infrastructure financing while maintaining transparency and accountability within Kenya’s public finance framework. The institutional design integrates policy alignment, professional management, and structured oversight to ensure that infrastructure capital is deployed in commercially viable and financially sustainable projects.

The governance framework separates policy direction from operational investment management. Government institutions provide strategic development guidance while professional fund managers oversee investment decisions, project structuring, and portfolio management. This institutional structure strengthens credibility among domestic and international investors seeking predictable governance standards and transparent investment processes.

National Infrastructure Fund Board

The Board serves as the highest decision making authority within the Fund and is responsible for strategic oversight, capital allocation policy, and long term portfolio performance. Its mandate includes supervision of the Fund’s financial stability, investment pipeline development, and risk management framework.

• Chairperson

The Chairperson provides strategic leadership to the Board and ensures that governance standards are maintained in accordance with the Act. The position requires extensive experience in infrastructure finance, capital markets, or institutional investment management. The Chairperson guides Board deliberations on investment strategy, oversees governance committees, and ensures that decisions remain aligned with long term national development objectives.

• Ex Officio Members

Senior government representatives participate on the Board to ensure alignment between the Fund’s investment strategy and national economic policy. The Cabinet Secretary responsible for the National Treasury provides fiscal policy coordination while the Principal Secretary responsible for infrastructure ensures alignment with national infrastructure planning. Their participation strengthens policy integration and supports coherent sequencing of infrastructure investment.

• Independent Directors

Independent directors are appointed through a competitive process based on professional experience in areas such as private equity, infrastructure asset management, project finance, and sovereign investment governance. These directors evaluate financial models, assess project viability, and ensure that investment decisions meet defined financial sustainability thresholds. Their role strengthens technical scrutiny and reinforces governance independence.

• Institutional Investor Representatives

Representation from domestic institutional investors, including pension funds, integrates the perspective of long horizon capital providers into Board deliberations. Their participation strengthens alignment between infrastructure investment structures and the investment requirements of long term institutional capital.

The Board operates through specialized committees responsible for audit and risk oversight, investment approvals, governance and remuneration, and strategic planning. This committee structure strengthens technical depth in decision making and enhances governance discipline across the Fund’s operations.

Executive and Investment Management

Day to day management of the Fund is entrusted to a professional executive team accountable to the Board through clearly defined performance targets and operational benchmarks. The executive structure enables the Fund to recruit specialized expertise in infrastructure investment, financial structuring, and global capital mobilization.

• Chief Executive Officer

The Chief Executive Officer functions as the accounting officer and chief investment strategist of the Fund. Responsibilities include development of investment pipelines, negotiation of infrastructure concession agreements, structuring of financing arrangements with investors, and management of portfolio performance. The CEO also oversees risk management systems, compliance frameworks, and financial reporting obligations.

• Investment Committee

The Investment Committee conducts structured due diligence prior to approval of any project financing. The committee evaluates project bankability, revenue predictability, regulatory conditions, environmental compliance, and long term operational sustainability. Only projects that meet defined financial and economic viability standards proceed to capital commitment.

• External Fund Managers

The Fund may appoint specialized external managers to oversee sector specific portfolios such as energy infrastructure, transport corridors, or water projects. External managers operate under clearly defined mandates that include performance targets, reporting requirements, and fee transparency obligations.

Accountability and Oversight Mechanisms

The Act establishes multiple oversight layers designed to maintain transparency, safeguard public resources, and strengthen investor confidence.

• Quarterly Performance Reporting

The Fund publishes quarterly reports outlining capital deployment, project implementation progress, portfolio performance, and financial exposures. These reports strengthen transparency and allow stakeholders to assess the operational performance of the Fund.

• Independent Audit Structure

Annual financial and operational audits are conducted by an independent international audit firm. The Auditor General also conducts statutory review to ensure compliance with Kenya’s constitutional public finance framework.

• Parliamentary Oversight

The National Treasury submits the Fund’s annual investment plan to the National Assembly for review. Parliamentary oversight strengthens accountability while maintaining operational independence in investment management.

Through this institutional framework, the National Infrastructure Fund Act, 2025 establishes a governance system designed to mobilize private capital at scale while safeguarding public resources. The structure positions the Fund as a professionally managed national investment platform capable of supporting long term infrastructure development and sustained economic transformation.

Strategic Priority Sectors and Project Pipeline

The National Infrastructure Fund Act, 2025 establishes a structured national investment pipeline focused on infrastructure sectors with strong economic multiplier effects and durable asset value. Capital deployment through the Fund prioritizes infrastructure capable of strengthening national productivity, expanding industrial capacity, enhancing climate resilience, and improving regional trade connectivity. Projects financed through the Fund are required to demonstrate long term economic value while generating stable revenue streams that sustain the Fund’s investment cycle.

Sector prioritization follows three core principles. Projects must deliver measurable economic impact across the national economy, demonstrate financial viability under structured investment models, and support scalable infrastructure expansion across counties and regions. This approach positions the Fund as a disciplined investment platform capable of financing transformative infrastructure while strengthening Kenya’s long term development capacity.

Transport and Logistics Infrastructure

Transport infrastructure forms a central pillar of the national infrastructure investment program due to its influence on trade efficiency, production mobility, and regional economic integration.

• Standard Gauge Railway Expansion

The national rail development program supports extension of the Standard Gauge Railway from Naivasha to Kisumu and onward toward Malaba, strengthening freight connectivity along the Northern Corridor. Expanded rail capacity increases cargo movement efficiency, reduces logistics costs for exporters and manufacturers, and strengthens Kenya’s position as a regional trade gateway serving the East African hinterland.

• Highway Dualling and Corridor Modernization

Strategic highway development includes dualling of approximately 2,500 kilometers of major national corridors, including high traffic routes connecting Nairobi with western Kenya and neighboring countries. Expanded highway capacity reduces travel time, improves road safety, and supports increased movement of agricultural and industrial goods across the national economy.

• Urban Mobility and Transport Systems

Infrastructure investment also supports development of urban transport systems designed to improve mobility within major cities. Projects include development of Bus Rapid Transit corridors and integrated urban transport infrastructure that reduce congestion, improve commuter efficiency, and support transit oriented urban development.

Transport investments financed through the Fund generate both direct financial returns and broader economic benefits across trade, tourism, manufacturing, and logistics services.

Energy and Petroleum Infrastructure

Energy infrastructure forms the backbone of industrial growth and economic expansion. Investment in this sector focuses on scalable power generation, efficient transmission systems, and strengthened energy logistics networks.

• National Power Generation Expansion

The energy development program targets expansion of installed electricity generation capacity toward approximately 10,000 megawatts by 2032, significantly strengthening national energy supply. Increased generation capacity supports industrial manufacturing, digital services, and rising demand for electricity across urban and rural areas.

• Renewable Energy Development

Projects financed through the Fund prioritize development of renewable energy assets including geothermal, wind, and solar generation facilities. These investments leverage Kenya’s natural energy resources while supporting long term energy sustainability.

• Electricity Transmission and Distribution Infrastructure

Investment in transmission infrastructure strengthens the national electricity grid, reduces technical losses, and improves reliability of power supply across the country. Expanded grid capacity also supports cross border electricity trade within the East African region.

Water Security and Agricultural Infrastructure

Water infrastructure investment strengthens climate resilience, expands irrigation capacity, and supports agricultural productivity across the country.

• National Dam Development Program

The national infrastructure program includes construction of approximately 1,250 dams, consisting of 50 large dams, 200 medium dams, and around 1,000 smaller water storage facilities distributed across multiple counties. These projects expand national water storage capacity, support irrigation, improve flood control, and enhance water availability for communities and agricultural zones.

• Irrigation Expansion and Agricultural Modernization

Investment in irrigation infrastructure targets expansion of irrigated farmland to approximately 2.5 million acres. Expanded irrigation enables year round agricultural production, stabilizes crop yields, supports agricultural exports, and strengthens national food security.

Digital and Industrial Infrastructure

Digital connectivity and industrial infrastructure are critical enablers of modern economic growth and knowledge driven industries.

• Special Economic Zone Infrastructure Development

The Fund supports development of infrastructure within strategic Special Economic Zones including Dongo Kundu, Naivasha, and Konza Technopolis. Investments include power supply systems, internal transport networks, water infrastructure, and industrial platforms designed to attract manufacturing investment.

• National Digital Connectivity Expansion

Investment in fiber optic networks and digital backbone infrastructure strengthens broadband connectivity across counties and sub county administrative centers. Expanded connectivity supports digital commerce, strengthens delivery of digital public services, and enhances participation in the digital economy.

Through this structured investment pipeline, the National Infrastructure Fund Act, 2025 establishes a coordinated national strategy for accelerating infrastructure development. Capital mobilized through the Fund is directed toward projects that strengthen productivity, expand industrial capacity, and enhance Kenya’s long term economic competitiveness.

Financial Provisions and Privatization Linkage

The National Infrastructure Fund Act, 2025 establishes a financial architecture that links infrastructure investment with strategic asset monetization and structured capital mobilization. The Act introduces a disciplined framework through which the Government converts value embedded in mature public assets into equity capital for large scale national infrastructure development. This financial structure strengthens the country’s infrastructure financing capacity while protecting fiscal stability and maintaining prudent management of public resources.

The Fund operates as a revenue generating investment platform rather than a grant based financing mechanism. Infrastructure assets financed through the Fund are structured to produce stable income streams that support reinvestment, portfolio growth, and long term capital sustainability. This model transforms infrastructure financing into a structured national investment cycle in which productive assets generate revenue that supports future infrastructure expansion.

Privatization Pipeline and Capital Mobilization

The Act authorizes the National Treasury to channel proceeds generated from privatization of selected state owned enterprises into the National Infrastructure Fund. This creates a structured fiscal bridge between asset monetization and infrastructure investment.

• Target Capitalization Envelope

Initial capitalization of the Fund is expected to mobilize approximately KES 347.5 billion, equivalent to roughly USD 2.7 billion, through strategic monetization of selected public assets. This capital forms the equity foundation that anchors the Fund’s investment operations and supports large scale capital mobilization.

• Strategic State Asset Transactions

The privatization pipeline includes partial divestment of selected government shareholdings in high value enterprises. Transactions involving entities such as Kenya Pipeline Company, Safaricom, and other mature commercial assets are expected to unlock significant capital while preserving operational continuity and long term commercial value.

• Catalytic Capital Mobilization Model

The initial equity base mobilized through asset monetization supports a leverage framework designed to attract institutional investment. Through a targeted capital leverage structure of approximately 1:10, the Fund aims to mobilize private capital at scale, significantly expanding the national infrastructure investment envelope.

Ring Fencing and Capital Protection Mechanisms

The Act establishes strict financial safeguards designed to protect capital integrity and maintain investor confidence in the Fund’s operations.

• Dedicated Infrastructure Holding Account

All proceeds generated through asset monetization are deposited in a designated infrastructure holding account at the Central Bank of Kenya. This arrangement ensures traceability of funds and prevents commingling with general exchequer resources.

• Restricted Capital Deployment

Disbursement of capital from the Fund is restricted to projects approved within the national infrastructure investment framework. Each project must meet defined financial, technical, and economic viability thresholds before capital allocation.

• Independent Audit and Verification

Transaction records and capital flows are subject to verification by oversight institutions including the Auditor General and other statutory authorities. These oversight mechanisms strengthen transparency and reinforce investor confidence in the Fund’s financial governance.

Revenue Generation and Self Sustaining Investment Model

Infrastructure projects financed through the Fund are structured to generate predictable revenue streams that support long term capital sustainability.

• Toll Based Transport Infrastructure

Highway projects financed through the Fund incorporate toll systems that support recovery of construction, maintenance, and financing costs. Structured concession arrangements ensure sustainable management of transport infrastructure assets.

• Energy Off Take Agreements

Energy infrastructure projects financed through the Fund operate under long term power purchase agreements and regulated tariff structures. These arrangements provide predictable revenue streams that strengthen financial viability.

• Lease and Concession Revenues

Infrastructure assets such as port terminals, logistics facilities, and industrial zones generate recurring income through concession agreements, lease payments, and service charges. These revenue streams support reinvestment and portfolio expansion within the Fund.

Transitional Provisions and Implementation Framework

The Act also includes provisions designed to support smooth operationalization of the Fund and alignment with ongoing infrastructure programs.

• Settlement of Verified Pending Bills

A portion of the Fund’s initial capitalization may support settlement of verified obligations in infrastructure sectors such as roads and water. Settlement of these obligations restores contractor confidence and enables stalled projects to resume implementation.

• Integration of Existing Infrastructure Agreements

Infrastructure projects structured under the Public Private Partnership framework may transition into the Fund’s investment oversight framework, ensuring continuity of contractual obligations and project delivery.

Through this financial architecture, the National Infrastructure Fund Act, 2025 establishes a disciplined national investment platform capable of mobilizing large scale capital for infrastructure development. The Fund converts the value of national assets into productive infrastructure investment while strengthening fiscal sustainability and expanding Kenya’s long term economic growth capacity.

Risk Governance and Capital Protection

The National Infrastructure Fund Act, 2025 establishes a comprehensive risk governance framework designed to safeguard investor capital, preserve the integrity of public resources, and ensure long term financial sustainability of the Fund. Infrastructure investment involves significant capital commitments over extended time horizons. The Act therefore embeds institutional safeguards that strengthen financial discipline, protect the Fund from excessive risk exposure, and ensure that investment decisions remain anchored in rigorous financial evaluation.

Risk governance within the Fund integrates financial oversight, investment screening, operational monitoring, and regulatory compliance. This layered framework strengthens the Fund’s credibility as a national investment platform capable of attracting long horizon capital from institutional investors while maintaining accountability within Kenya’s public finance system.

Investment Risk Management

The Act establishes structured safeguards to ensure that capital deployment follows disciplined investment principles and protects the long term value of the Fund.

• Strict Investment Eligibility Criteria

All projects financed through the Fund must demonstrate financial viability, predictable revenue streams, and measurable economic impact. Investment decisions are supported by rigorous financial modeling, demand forecasts, and technical feasibility assessments before approval of capital deployment.

• Prohibition of High Risk Financial Instruments

The Fund is restricted from participating in speculative financial activities that could expose capital to excessive volatility. Investment operations focus exclusively on infrastructure assets and structured financing mechanisms aligned with long term economic value creation.

• Portfolio Diversification Framework

Capital deployment is distributed across multiple infrastructure sectors including transport, energy, water infrastructure, and digital connectivity. Diversification reduces sector concentration risk and strengthens the resilience of the Fund’s overall investment portfolio.

Financial Stability and Leverage Controls

The Act introduces financial safeguards designed to maintain balance sheet stability and protect the Fund from unsustainable borrowing exposure.

• Statutory Leverage Limits

The Fund operates within defined borrowing limits that maintain prudent debt to equity ratios. These limits ensure that infrastructure financing remains sustainable and that the Fund maintains a strong capital base capable of absorbing financial shocks.

• Liquidity Management Framework

Revenue streams generated from infrastructure assets are managed through structured liquidity planning to ensure that operational obligations, maintenance costs, and investor returns are met consistently.

• Long Term Capital Preservation

The Fund prioritizes infrastructure assets capable of generating durable revenue streams across multiple economic cycles. Stable income sources strengthen portfolio resilience and support continuous reinvestment in new infrastructure projects.

Transparency and Public Accountability

The Act embeds multiple accountability mechanisms designed to strengthen public confidence and investor trust in the Fund’s operations.

• Periodic Performance Disclosure

The Fund publishes regular reports detailing capital deployment, financial performance, project implementation progress, and risk exposure. Public disclosure strengthens transparency and enables stakeholders to monitor operational performance.

• Independent Financial Audits

Annual financial statements are subject to independent external audit as well as statutory review by the Auditor General. This dual audit structure ensures compliance with both corporate governance standards and constitutional public finance requirements.

• Legislative Oversight

The National Assembly exercises oversight through review of the Fund’s annual investment plans and financial reports submitted through the National Treasury. Parliamentary scrutiny strengthens accountability while preserving operational independence in investment management.

Through these safeguards, the National Infrastructure Fund Act, 2025 establishes a disciplined risk governance framework capable of protecting investor capital while supporting long term infrastructure investment. The institutional safeguards embedded within the Act ensure that the Fund operates with financial prudence, operational transparency, and strong governance standards that support sustainable national development.

Project Selection and Investment Screening

The National Infrastructure Fund Act, 2025 establishes a rigorous project evaluation framework designed to ensure that capital deployed through the Fund supports infrastructure assets with strong economic impact and sustainable financial performance. Infrastructure projects financed through the Fund must meet clearly defined technical, financial, environmental, and governance standards before capital commitment. This structured appraisal framework ensures that infrastructure investments strengthen national productivity while protecting the long term financial stability of the Fund.

Project selection follows a disciplined screening process conducted by the Fund’s Investment Committee and professional management team. Each proposed project undergoes comprehensive technical review, financial modeling, and economic impact assessment. Only projects that demonstrate measurable national development benefits and sustainable revenue generation qualify for financing under the Fund.

Economic Impact and National Development Value

Projects financed through the Fund must demonstrate measurable contributions to national economic growth and infrastructure capacity.

• Contribution to National Productivity

Investment proposals are assessed for their ability to strengthen trade efficiency, agricultural productivity, industrial development, and logistics performance. Projects that reduce transportation costs, improve production capacity, or expand national infrastructure networks receive priority consideration.

• Employment Creation and Economic Linkages

Infrastructure investments generate employment during construction and support long term economic activity across sectors such as manufacturing, agriculture, logistics, and services. Project appraisal includes evaluation of job creation potential and broader economic spillover effects.

• Regional Integration and Market Expansion

Projects that strengthen regional connectivity and expand trade corridors receive priority consideration due to their ability to enhance Kenya’s position as a regional logistics hub within East Africa.

Financial Viability and Revenue Security

Financial sustainability forms a central pillar of the investment screening process.

• Predictable Revenue Generation

Infrastructure assets financed through the Fund must demonstrate the ability to generate stable and predictable revenue streams. Revenue models may include toll systems, lease arrangements, concession agreements, service tariffs, or regulated utility payments.

• Robust Financial Modeling

Detailed financial projections are conducted to evaluate expected returns, operating costs, demand forecasts, and long term asset maintenance requirements. Sensitivity analysis is applied to assess project resilience under different economic conditions.

• Investor Return Thresholds

Projects must meet defined investment return benchmarks that support participation by institutional investors and long term capital providers. This ensures that infrastructure assets financed through the Fund remain attractive to domestic and international investors.

Environmental and Climate Sustainability

Infrastructure development financed through the Fund integrates environmental protection and climate resilience principles.

• Environmental Compliance Requirements

Projects must meet national environmental standards and undergo environmental impact assessments prior to approval. These assessments evaluate ecological impact, land use implications, and mitigation strategies.

• Climate Resilience and Sustainability

Infrastructure assets are evaluated for their ability to withstand climate variability and support long term environmental sustainability. Water storage infrastructure, renewable energy projects, and climate resilient transport systems receive priority consideration.

Risk Allocation and Contractual Structure

Infrastructure projects financed through the Fund incorporate structured contractual frameworks that allocate risk appropriately between public and private stakeholders.

• Construction and Operational Risk Management

Project agreements clearly define responsibilities related to construction delivery, operational management, and asset maintenance to ensure long term infrastructure reliability.

• Regulatory Stability and Legal Certainty

Projects must operate within stable regulatory frameworks that provide certainty for investors and infrastructure operators.

• Long Term Maintenance and Asset Performance

Infrastructure investments incorporate structured maintenance frameworks designed to preserve asset value and ensure long term operational performance.

Through this disciplined project evaluation framework, the National Infrastructure Fund Act, 2025 ensures that infrastructure capital is deployed into projects that deliver sustainable economic value while strengthening Kenya’s long term infrastructure capacity.

Conclusion

The National Infrastructure Fund Act, 2025 establishes a major institutional instrument for financing large scale national infrastructure through structured capital mobilization and disciplined asset management. With presidential assent now secured, the Act provides a permanent legal and financial platform capable of mobilizing long horizon investment into priority infrastructure across the country. The Fund therefore represents a strategic shift in the way Kenya finances infrastructure development, moving toward a model anchored in investment capital, asset productivity, and structured revenue generation.

The national investment program supported by the Fund targets approximately KES 5 trillion in infrastructure development over the coming decade, with capital mobilization driven by both public seed equity and large scale institutional investment. Initial capitalization through strategic asset monetization is expected to mobilize approximately KES 347.5 billion, creating the equity base that anchors the Fund’s investment operations and supports further capital mobilization from global infrastructure investors.

The Fund establishes a disciplined financing cycle in which national assets are converted into productive infrastructure investment. Revenue generated from infrastructure assets such as toll roads, power projects, logistics facilities, and industrial platforms strengthens the capital base of the Fund and supports reinvestment into future infrastructure development. This structure enables infrastructure assets to function as long term national investment instruments capable of generating sustained economic value.

Through structured governance, professional fund management, and rigorous investment screening, the Fund positions Kenya to mobilize capital at a scale capable of accelerating infrastructure delivery across key sectors.

• Transport and Logistics Infrastructure

Investment programs strengthen national and regional connectivity through highway modernization, railway expansion, and improved logistics infrastructure that supports trade efficiency and regional integration.

• Water Security and Irrigation Systems

Large scale dam construction and irrigation expansion strengthen agricultural productivity, support climate resilience, and improve national food security.

• Energy and Power Infrastructure

Expansion of electricity generation and transmission capacity supports industrial development, digital infrastructure growth, and reliable energy supply across the country.

• Digital and Industrial Infrastructure Platforms

Investment in digital connectivity and special economic zones strengthens industrialization, expands technology driven economic activity, and supports innovation based growth.