By Brian Kiprono - Reporter
Kenya, December 12 2025 - President William Ruto has signalled a major shift in how Kenya will finance its development, saying a new National Infrastructure Fund (NIF) will help the country escape its long-running cycle of borrowing and heavy taxation.
Speaking during Jamhuri Day celebrations on Friday, the President said the Fund—set for Cabinet approval on Monday—will mark a turning point in Kenya’s economic planning by ensuring that national assets build national wealth rather than cover routine government expenses.
Ruto described the NIF as a vehicle designed to “align financial resources with development priorities” by putting privatisation proceeds to work, drawing in long-term investment, and encouraging Kenyans to own a stake in national infrastructure through capital markets.
For years, the President noted, revenue from the sale of State assets such as Kenya Airways or KenGen went straight into the national budget, mostly to pay salaries or service public borrowing. “We privatised major assets, but we cannot trace a single flagship project funded by those proceeds,” he said. “That cycle ends now.”
Under the new model, all current and future privatisation returns will be channelled exclusively into infrastructure—roads, energy projects, water systems, and other long-term public investments.
Ruto added that each shilling placed in the Fund is expected to unlock at least ten more from pension schemes, international investors, development institutions, and sovereign wealth partners. Kenya needs close to Sh5 trillion for four priority national projects, a figure the President admitted is steep but unavoidable.
More from Kenya
“Borrowing more worsens our burden, raising taxes strains families, and relying solely on the national budget would take decades,” he said. “Inaction is not an option.”
A central pillar of the plan is a rapid expansion of Kenya’s energy capacity. With current output at 3,300MW, Ruto said the country must generate an additional 10,000MW within seven years to support industries, data centres, electric mobility, and an emerging AI-driven economy.
He also pointed to sweeping reforms under the new Government-Owned Enterprises Act, which introduces merit-based appointments and removes political influence from State corporations.
Alongside the NIF, the Cabinet will review the Sovereign Wealth Fund Policy, aimed at safeguarding savings for future generations, cushioning the economy from shocks, and investing strategically in national priorities.
Ruto said the framework had been shaped through conversations with senior political figures, including the late Raila Odinga and former President Uhuru Kenyatta. “Monday begins a new chapter,” he said, “one where Kenya finances development through strength, not struggle.”
