The National Infrastructure Fund Bill, 2026
Status Timeline
Proposed
Active now
Public Review
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Debate
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Executive
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Final
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Establishment of the National Infrastructure Fund
Establishes a new body corporate (the Fund) tasked with accelerating the development of national highways, railway networks, air/sea ports, electricity generation, reservoirs, irrigation, and agribusiness infrastructure under Section 5.
Independent Board of Directors and Recruitment Rules
Requires the Fund to be managed by a Board consisting of an independent chairperson, the National Treasury Cabinet Secretary (or representative), four independent directors, two development banking experts, and the CEO. Independent directors must be competitively recruited under Section 13 of the Government Owned Enterprises Act (No. 25 of 2025).
Strict Limitations on Fund Capital and Borrowing
The Fund will be financed through privatization proceeds, Parliamentary appropriations, and private capital. Crucially, Section 12(2) prohibits the Board from borrowing or taking credit against its own balance sheet, ensuring it only undertakes project financing in accordance with the Act.
Mandatory Feasibility Studies and Investment Policy
Before investing, the Fund must conduct comprehensive feasibility studies covering technical, legal, social, economic, and environmental impacts (Section 23). It must also develop a five-year Investment Policy specifying priority sectors, expected rates of return, and exposure limits (Section 21).
Bill No.
National Assembly Bills No. 1 of 2026
Gazette No.
Supplement No. 8 of 2026
Sponsor
Kimani Ichung'wah
Background
The National Infrastructure Fund Bill, 2026 addresses the need to scale up catalytic national infrastructure development in Kenya while reducing reliance on public debt. By establishing a structured, body corporate framework, the Bill seeks to attract private and non-traditional financing sources, including domestic pension funds, collective investment schemes, sovereign wealth funds, and climate finance.
Key Amendments
- Establishment of the Fund: Enacts the National Infrastructure Fund as a body corporate capable of contracting, investing in commercially viable projects, and acquiring securities.
- Board Governance: Sets up a Board comprised primarily of independent directors and development banking experts. Independent directors serve three-year terms (renewable once).
- Investment and Feasibility Mandates: Requires a five-year Investment Policy and mandatory multi-disciplinary feasibility studies before any investment is finalized.
- Government Support Measures: Empowers the Cabinet Secretary for National Treasury to issue credit guarantees, binding undertakings, or political risk insurance to de-risk projects.
New Obligations
- The Board of Directors: Must develop and adopt an annual Investment Plan before each financial year to serve as the basis for performance contracts with the Treasury (Section 18). It must also establish an Audit Committee chaired by an independent director (Section 14).
- Financial Reporting and Transparency: The Fund must submit quarterly and annual reports to the Cabinet Secretary (Section 26), and its accounts must be submitted to the Auditor-General within four months of the end of the financial year (Section 36). Audited reports, performance evaluations, and director appointments must be published on the Treasury's website (Section 27).
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