Nairobi — President William Ruto has said the newly established National Infrastructure Fund will be central to financing Kenya's next phase of development, signalling a shift away from heavy borrowing and rising tax pressures.
Delivering his third State of the Nation Address before a joint sitting of Parliament, Ruto said proceeds from the privatisation of State assets will be ring-fenced and used to attract additional investment from pension funds, sovereign partners, private equity firms, and development finance institutions.
"This fund is the strategic solution that will provide an innovative framework to scale up our resources to match our ambition," he said.
"It will fulfil our manifesto commitment to rebuild Kenya's infrastructure while reducing reliance on tax and debt."
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The President said the multiplier model will enable the government to build critical infrastructure without increasing taxes or resorting to unsustainable foreign loans.
Ruto also underscored the role of the Sovereign Wealth Fund, which he described as essential for protecting the country's long-term economic interests as Kenya turns to alternative financing mechanisms.
He said the fund will be anchored on three pillars:
- Savings, to secure long-term national wealth,
- Stabilisation, to cushion the economy against global shocks including commodity volatility, pandemics, and geopolitical disruptions, and
- Infrastructure investment, to attract private capital into national priority projects while growing public assets.
Ruto first unveiled both the Infrastructure Fund and the Sovereign Wealth Fund in October 2025 after the passage of a new privatisation law that unlocked capital mobilisation from the sale of government assets.
The National Treasury has since published a draft Sh200 billion Sovereign Wealth Fund Bill, outlining the legal framework for managing and growing proceeds from natural resources and privatisation.
