Kenya is on the cusp of a monumental legislative overhaul with the introduction of the National Infrastructure Fund Bill, 2026. This ambitious bill, championed by Majority Leader Kimani Ichung’wah, proposes the creation of a KSh 5 trillion fund designed to revolutionize how Kenya finances its critical infrastructure projects, from sprawling new airports to expansive railway networks.
The core objective of the bill is clear: to drastically reduce the nation’s reliance on public debt and traditional tax revenues for infrastructure development. Instead, the proposed fund aims to tap into vast pools of private capital and domestic pension funds, redirecting these significant resources towards nation-building initiatives.
“For too long, our national development has been held hostage by borrowing limits and the burden on the taxpayer,” stated Ichung’wah during a recent parliamentary briefing. “This bill offers a sustainable, innovative pathway to unlock the potential of Kenyan and international private investment, ensuring our infrastructure keeps pace with our growth ambitions.”
Proponents argue that the National Infrastructure Fund will provide a stable, long-term funding mechanism, insulating key projects from the volatility of government budgets and external donor conditions. By attracting private investors, the government hopes to leverage expertise, efficiency, and scale, accelerating project completion and fostering economic growth.
However, the bill is not without its detractors and significant questions. Legal and economic analysts are scrutinizing the proposed framework, particularly the extent of control the National Treasury will wield over the KSh 5 trillion fund. Concerns are mounting over potential avenues for mismanagement, lack of transparency, and the political influence that could sway investment decisions.
“While the intent to reduce public debt is laudable, the sheer scale of this fund necessitates robust oversight and accountability mechanisms,” warned Dr. Njeri Maina, a constitutional law expert based in Nairobi. “Without clear safeguards, such a large pool of capital could become an attractive target for corruption, undermining the very goals it seeks to achieve.”
Others point to the potential impact on the national financial ecosystem, particularly how the diversion of pension funds could affect other sectors or the availability of capital for smaller, private enterprises.
Public participation on the 2026/27 Budget Policy Statement, which will inevitably be influenced by this bill, is currently underway and scheduled to close between February 20th and 23rd. This period is expected to see heated debates and submissions from various stakeholders, including legal bodies, civil society organizations, and economic think tanks, all keen to shape the final form of this transformative legislation.
As Kenya grapples with its ongoing debt challenges and seeks sustainable pathways to development, the National Infrastructure Fund Bill, 2026, stands as a bold, albeit contentious, proposal. Its passage, or indeed its modification, will undoubtedly mark a pivotal moment in Kenya’s economic and legal history, setting a precedent for how the nation plans to build its future. The coming weeks will be crucial in determining whether this ambitious vision transforms into a concrete reality, or if it remains a subject of intense legal and fiscal debate.