NAIROBI, Feb 25 – Kenya is advancing plans to mobilize Ksh5 trillion ($38.7 billion) for infrastructure development through a newly established National Infrastructure Fund, as the government seeks to scale investment while reducing reliance on sovereign borrowing.
The initiative follows high-level discussions between President William Ruto and the International Finance Corporation, which is advising on the fund’s structure, governance, and investment framework. The platform is designed to blend public and private capital, targeting strategic sectors including transport, energy, irrigation, and urban infrastructure.
Officials say the fund will help unlock long-term financing from institutional investors such as pension funds, insurers, development finance institutions, and global private capital, easing pressure on government debt while accelerating national development priorities.
Seed funding will come from proceeds of government asset sales, including stakes in strategic state-owned enterprises, with capital ring-fenced exclusively for infrastructure investment. The structure allows public capital to serve as anchor funding, leveraging additional private-sector investment at scale.
The IFC’s involvement is focused on ensuring the platform meets international standards in transparency, governance, and risk management, positioning it as a credible vehicle capable of attracting multilateral lenders and private investors.
The government aims to raise Ksh2.5 trillion, or half of the total target, by April, marking an early milestone in the broader funding strategy. The remaining capital is expected to be mobilised over the next decade, reflecting a long-term financing approach aligned with Kenya’s economic transformation agenda.
President Ruto said the initiative will accelerate infrastructure delivery while supporting Kenya’s long-term ambition to achieve upper middle-income status, positioning the National Infrastructure Fund as a cornerstone of the country’s investment-led growth strategy.
