Kenya has taken a decisive leap toward long-term economic transformation after the Cabinet approved the establishment of the National Infrastructure Fund and a Sovereign Wealth Fund, anchoring an ambitious KSh5 trillion roadmap aimed at propelling the country into a first-world economy.
The two funds form the backbone of a new financing architecture designed to mobilise domestic capital, attract large-scale private investment and reduce overreliance on public borrowing and taxation. The National Infrastructure Fund, approved as a limited liability company, will act as the central engine for aligning government resources with national development priorities.
Through strategic monetisation of mature public assets, deployment of national savings, democratisation of ownership via capital markets, and innovative domestic resource mobilisation, the Fund is expected to unlock massive private sector financing. Cabinet projections indicate that every shilling invested through the Fund could attract up to KSh10 from long-term investors, including pension funds, private equity, sovereign partners and development finance institutions.
Crucially, all privatisation proceeds will now be ring-fenced and invested strictly in value-preserving public infrastructure projects, marking a shift toward investment-led growth rather than recurrent consumption.
Alongside this, Cabinet approved the Sovereign Wealth Fund Policy, establishing a framework for the prudent management of revenues from mineral and petroleum resources, dividends from public investments, and part of privatisation proceeds. Anchored on inter-generational equity, fiscal discipline, and protection against external shocks, the fund seeks to secure Kenya’s long-term competitiveness while operationalising Article 201 of the Constitution on responsible public finance.
Together, the two funds will finance Kenya’s transformation agenda, with a sharp focus on food security, infrastructure expansion, and energy generation.
To strengthen food and water security, the government plans to roll out large-scale irrigation through the construction of 50 mega dams, 200 mini-dams, and over 1,000 micro-dams, opening up an additional 2.5 million acres for agricultural production. The investments are expected to drive agro-industrialisation, stabilise food supply, and uplift rural livelihoods.
In transport and logistics, Cabinet approved sweeping upgrades, including the dualling of 2,500 kilometres of highways, tarmacking of 28,000 kilometres of roads, extension of the Standard Gauge Railway to Malaba, expansion of regional oil pipelines, and modernisation of the ports of Mombasa and Lamu as well as key airports. These projects aim to strengthen connectivity across farms, industries, cities, and regional markets.
Powering the growth agenda will be a major scale-up of energy generation, with at least 10,000 megawatts of new capacity targeted over the next seven years. The expansion will draw on Kenya’s geothermal, hydro, solar, wind, and nuclear potential to support manufacturing, value addition, the digital economy, e-mobility, and emerging technologies.
To underpin this push, Cabinet approved the National Energy Policy to address low electricity access, unreliable supply, climate risks, and limited investment, while promoting renewables and private sector participation. The National Petroleum Policy was also endorsed, updating the 2004 framework to align with the Constitution and recent oil discoveries, strengthen governance, boost LPG uptake, and improve revenue management.
Cabinet further greenlit innovative financing models for priority transport projects, including the Naivasha–Kisumu SGR Phase 2B, the SGR link to Uganda, Nairobi Railway City Central Station, Bus Rapid Transit Lines 2 and 3, commuter rail, and non-motorised transport systems.
In a move set to restore confidence in the construction sector, Cabinet noted that all pending bills and accrued interest for certified road works up to December 31, 2024, have been fully settled, with KSh123 billion paid. Since April 2025, the payment programme has unlocked or accelerated 875 road contracts nationwide.
Beyond infrastructure, Cabinet approved the establishment of a National Integrated Security Command and Control System to modernise public safety through real-time intelligence sharing among security agencies, with initial deployment in major cities, transport corridors, and border counties.
Other approvals included the rollout of second-generation smart driving licences under a public-private partnership, the Livestock Value Chain Support Project to boost dairy productivity and farmer incomes, and the National Care Policy to address unpaid care work while advancing gender equality.
Cabinet was also briefed on Kenya’s hosting of the 4th COMESA–EAC–SADC Tripartite Summit in mid-2026 and approved the operationalisation of the Kenya National Convention Bureau to position the country as a leading global destination for meetings, incentives, conferences, and exhibitions.
Overall, the Cabinet resolutions mark a bold shift toward a sustainable, investment-driven development model, with the government betting that disciplined capital mobilisation, strong governance, and long-term planning will secure lasting prosperity for present and future generations.
