Nairobi — President William Ruto has announced plans to establish two new funds, an Infrastructure Fund and a Sovereign Wealth Fund, to anchor Kenya's long-term economic stability and promote prudent investment of public resources.
Speaking in Vihiga County on Sunday, President Ruto said the initiative reflects his administration's commitment to safeguarding the country's economic future.
"We are in the process of having two important funds -- one infrastructure fund and the other, a sovereign wealth fund. We must think about tomorrow," he said.
The Head of State noted that the two funds will support sustainable development by channeling resources into long-term national priorities and cushioning the economy from future shocks.
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Ruto's remarks have reignited debate over the Sovereign Wealth Fund Bill of 2019, which proposed the creation of a National Sovereign Wealth Fund to manage surplus revenues from oil, gas, minerals, and state-owned enterprises.
The bill, introduced under former President Uhuru Kenyatta, sought to promote intergenerational equity and create a buffer against economic downturns but stalled in Parliament over concerns about governance and funding sources.
Ruto's renewed push could see the bill reintroduced in the National Assembly as his government explores innovative financing models amid rising debt obligations.
The proposed Infrastructure Fund will focus on financing key public projects while reducing dependence on commercial borrowing and infrastructure bonds -- a move analysts say could reshape Kenya's fiscal management.
The announcement comes months after the Finance Bill 2024, backed by the International Monetary Fund (IMF), introduced a withholding tax on infrastructure bonds, a move that unsettled investors.
Ruto's statement also coincides with an IMF mission led by Haimanot Teferra, currently in Nairobi to discuss a new financial support programme.
The visit follows Kenya's request for renewed IMF engagement after its previous Extended Fund Facility (EFF) and Extended Credit Facility (ECF) programmes stalled earlier this year.
The IMF team is expected to assess Kenya's fiscal consolidation efforts, debt management strategy, and structural reforms -- all of which relate closely to the government's proposed new financing instruments.
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Analysts say the timing of Ruto's announcement signals Nairobi's intent to demonstrate fiscal discipline and long-term planning during the ongoing IMF talks.
