Cabinet Approves National Infrastructure Fund to Drive Kenya’s KSh5 Trillion Transformation Agenda
Nairobi, 16 December 2025 — Kenya has taken a decisive step towards its KSh5 trillion transformation agenda and ambition of becoming a first-world economy following Cabinet approval of the National Infrastructure Fund and the Sovereign Wealth Fund in Nairobi, yesterday.
The approval marks a major shift in the financing and delivery of large-scale public infrastructure, moving away from heavy reliance on borrowing and taxation towards an investment-led, market-driven model designed to crowd in private capital.
Structured as a limited liability company, the National Infrastructure Fund will serve as the central vehicle for financing priority public infrastructure projects. It will be overseen by a competitively appointed board of directors and a chief executive officer to ensure strong governance, transparency and commercial discipline.
Through innovative mobilisation of domestic resources, strategic monetisation of mature public assets, and broader participation through capital markets, the Fund is expected to unlock substantial private sector investment. Under the new framework, all proceeds from privatisation will be ring-fenced exclusively for infrastructure projects that generate long-term public value.
In the transport sector, the government plans to dual 2,500 kilometres of highways, tarmac 28,000 kilometres of roads, extend the Standard Gauge Railway (SGR) to Malaba, expand regional oil pipelines, and modernise airports alongside the ports of Mombasa and Lamu.
These investments are expected to significantly strengthen connectivity between farms, industries, cities and regional markets, boosting productivity, trade and competitiveness.
To support priority transport projects, Cabinet also approved an innovative financing model targeting flagship developments, including the Naivasha–Kisumu SGR Phase 2B, the SGR link to Uganda, the Nairobi Railway City Central Station, Bus Rapid Transit Lines 2 and 3, expanded commuter rail services, and enhanced non-motorised transport infrastructure.
In a major boost to the construction sector, Cabinet noted that all pending bills for certified works and accrued interest within the Ministry of Roads up to 31 December 2024 have been fully settled. The ministry has paid KSh123 billion, restoring contractor confidence and enabling stalled projects to resume. Since April 2025, the payment programme has unlocked or accelerated 875 road contracts nationwide.
Overall, the approvals signal a decisive shift towards a sustainable, investment-led development model aimed at accelerating infrastructure delivery, preserving national value, and securing lasting prosperity for present and future generations.
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