By Brian Kiprono - Reporter
Kenya, July 8, 2026 - Kenya will now set aside 30 per cent of all mineral and petroleum revenues for future generations after President William Ruto signed the Sovereign Wealth Fund Act, 2026, establishing the country's first national savings fund backed by natural resource income.
The new law creates a framework for managing revenue from Kenya's extractive sector, with the government aiming to protect part of the country's resource wealth, shield the economy from financial shocks and finance strategic development projects.
Under the Act, 30 per cent of all mineral and petroleum revenues collected by the government will be deposited into a newly created Future Generations Fund.
The fund is designed to build long-term national savings, provide an alternative source of income once natural resources are exhausted and support development projects when revenues from the extractive sector decline.
Beyond preserving wealth for future generations, the legislation establishes two additional funds to strengthen Kenya's economic resilience.
A Stabilisation Fund will be used to cushion the economy during major crises such as pandemics, global financial disruptions and commodity price shocks. The law cites events such as the COVID-19 pandemic and global oil supply disruptions as examples of emergencies the fund is intended to address.
The Act also establishes a Strategic Infrastructure Investment Fund, which will finance priority national projects aligned with Kenya's development agenda while attracting private sector investment.
To protect public resources, the law imposes strict rules on how the Sovereign Wealth Fund can be invested.
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The fund will not be allowed to invest in speculative financial derivatives, unlisted securities, private equity, commodities, artwork, real estate within Kenya or securities issued by Kenyan entities.
Lawmakers said the restrictions are intended to minimise financial risk and preserve the country's savings for future generations.
The legislation also strengthens oversight by requiring the National Assembly to approve the fund's investment policies before they are implemented.
The new law introduces legal penalties for anyone found to have misappropriated or unlawfully diverted assets belonging to the Sovereign Wealth Fund.
Officials say the safeguards are intended to enhance transparency, strengthen accountability and ensure revenues from Kenya's natural resources benefit both current and future generations.
The signing of the Act marks a significant milestone in Kenya's management of mineral and petroleum wealth, placing the country alongside a growing number of nations that use sovereign wealth funds to preserve resource revenues, stabilise their economies and support long-term national development.