Nairobi — The Government will establish a new limited liability company to manage its Sh5 trillion wealth fund following Cabinet approval, marking a major shift in how the State mobilises and deploys long-term development capital.
According to a State House dispatch, the National Infrastructure Fund will act as the central vehicle for aligning public financial resources with national development priorities, while operating under a corporate structure aimed at improving governance, transparency and investment discipline.
Cabinet also approved the establishment of a Sovereign Wealth Fund to anchor Kenya's long-term development and economic transformation.
"Under the new framework, all privatisation proceeds will be ring-fenced and invested strictly in public infrastructure projects that generate and preserve long-term value," Cabinet said.
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"Every shilling invested through the Fund is expected to crowd in up to Sh10 additional shillings from long-term investors, including pension funds, sovereign partners, private equity funds and development finance institutions."
In parallel, Cabinet endorsed a Sovereign Wealth Fund Policy that sets out a comprehensive framework for the prudent management and investment of revenues from mineral and petroleum resources, dividends from public investments and a portion of privatisation proceeds through a dedicated national fund.
"Anchored on inter-generational savings, protection against external shocks and strategic investments with commercial returns, the Sovereign Wealth Fund will strengthen fiscal discipline, enhance resilience and support long-term national competitiveness," Cabinet said.
The framework is also intended to operationalise Article 201 of the Constitution on inter-generational equity and advance the Kenya Kwanza administration's investment-led growth agenda.
Once operational, the new company is expected to play a central role in mobilising private and institutional capital into infrastructure, while safeguarding public assets and ensuring long-term value creation for future generations.
