Fix gaps in Sh340 billion fund for infrastructure

Infrastructure development is essential for national progress and prosperity. This explains why the government has established an infrastructure fund to mobilise resources.

Therefore, it is important that the funds are used well and properly accounted for. A parliamentary committee says that public participation with private sector investment bankers and fund managers has exposed loopholes in the Sh340 billion Infrastructure Fund that need to be sealed.

The Finance and National Planning Committee has identified lapses in risk management, project viability, investment limits and conflict of interest safeguards. It has, therefore, recommended an overhaul of the sessional paper to guide the National Infrastructure Fund (NIF) board on financing commercially viable projects.

The sessional paper tabled by National Treasury Cabinet Secretary John Mbadi is meant to guide the financing of commercially viable national infrastructure projects. It will mobilise domestic and international capital.

Established under the National Infrastructure Fund Act, 2026, the NIF is expected to raise Sh5 trillion without piling more debt on taxpayers. It targets roads, rail networks, ports, airport development, especially the expansion of the Jomo Kenyatta International Airport in Nairobi, energy generation, water reservoirs, and irrigation.

It is also meant to attract non-traditional capital from pension funds, collective investment schemes, and private investors alongside public asset monetisation. The board should ring-fence, fund, and execute mega-projects independent from the National Treasury.

The infrastructure fund aims to break reliance on high-interest public borrowing and heavy taxation by shifting towards private-sector investment. The high public debt consumes over 70 per cent of government revenue, leaving little for development.

Follow our WhatsApp channel for breaking news updates and more stories like this.