President William Ruto has announced that the government plans to raise part of the funds for the National Infrastructure Fund (NIF).
Speaking at a Methodist Church Leadership event at State House, Nairobi, on February 20, President Ruto revealed that Kenya anticipates raising Ksh2.5 trillion, half of the total target, by April this year, representing a significant step in the government’s infrastructure financing approach.
“We have begun the process of securing Ksh5 trillion, and with divine help, by the fourth month of this year, we would have obtained half of that amount,” stated President Ruto.
The remaining Ksh2.5 trillion is expected to be mobilized over a ten-year period, making the full
According to President Ruto, this plan will not depend on borrowing but will be accomplished through alternative methods that will not burden the country financially, given Kenya’s total debt stands at Ksh12 trillion.
To secure the funds, the government intends to partially privatize state-owned enterprises, including the leading telecom company Kenya Pipeline Company and East Africa Portland Cement, which is projected to generate approximately Ksh350 billion initially.
Ruto also outlined plans to access pension funds, insurance companies, and international development finance institutions, directing long-term institutional capital directly into large-scale infrastructure projects throughout Kenya.
“We are moving away from conventional debt and taxation toward an investment-led, market-driven model,” stated President Ruto.
The NIF will facilitate major projects, including extending the Standard Gauge Railway (SGR) to Malaba and upgrading Jomo Kenyatta International Airport (JKIA), both crucial for Kenya’s regional economic competitiveness.
This aligns with President Ruto’s vision for Singapore, where his administration seeks to elevate Kenya from developing to developed nation status.
The other fund, , creating a long-term financial buffer for future development beyond the NIF.
The fund will be organized as a Limited Liability Company, managed by a competitively appointed board and CEO, designed to function with commercial independence and free from political interference.