Nairobi, Kenya — Kenya is poised to establish a new infrastructure fund to address its substantial infrastructure needs, aiming to mobilize funding for critical projects like roads, energy, and ports. The country’s public debt, which surged by over 34% in three years to reach approximately 12. 30 trillion Kenya shillings (US$94.
6 billion) as of December 2025, underscores the urgency of this endeavor. Despite this, the fund’s potential to close the nation’s infrastructure gap of roughly US$2. 1 billion annually until 2040 is clouded by concerns over its operational design.
The National Infrastructure Fund Act envisions the fund as a corporate entity, governed by a board that includes state officials and independent directors. However, the Act’s provisions raise concerns about the fund’s autonomy and effectiveness. For instance, the power to appoint independent directors lies with the treasury cabinet secretary, who is also a board member, potentially leading to conflicts of interest and compromised independence.
Furthermore, the Act’s performance evaluation metrics, including the use of audited financial statements, may not adequately reflect the fund’s objectives. The fund’s performance should be more closely tied to the quantity and quality of financial resources mobilized from private sources and the actual investment in infrastructure projects. Paragraph: The success of Kenya’s new infrastructure fund hinges on addressing these design challenges and ensuring that the fund operates autonomously and with clear, performance-based incentives.
Without these improvements, the fund may fall short of its potential to significantly bolster Kenya’s infrastructure and economic development.
Source: The Conversation: In-depth analysis, research, news and ideas from leading academics and researchers.
