Mbadi hails National Infrastructure Fund as a game-changer for development
By Kiprono Keileb, March 10, 2026The Cabinet Secretary for the National Treasury, John Mbadi, has described the newly established National Infrastructure Fund (NIF) as a revolutionary step in shifting Kenya from a debt-heavy development approach to an investment-led model. The fund is set to finance major projects under the Vision 2030 and MTP IV frameworks.
In a statement shared on X on Tuesday, March 10, 2026, by the State Department of Public Investments and Assets Management, CS Mbadi explained that the NIF focuses on investment rather than borrowing, creating a sustainable funding mechanism for the country’s infrastructure needs.
“The NIF is designed as a ‘game-changer’ for Kenya, transitioning our development model from being debt-dependent to investment-led,” CS Mbadi said.
He emphasised that the fund will exclusively target commercially viable projects capable of generating their own revenue, such as toll roads, energy plants, and piped water systems, adding that the NIF also provides a safer investment environment for both local and international institutional investors.
“Rather than borrowing from abroad, National Treasury is ‘recycling’ capital by selling stakes in mature state-owned enterprises, like the KPC IPO, and funnelling those proceeds into the NIF to build new assets. By creating a structured vehicle, the government provides a ‘cushion’ that makes it safer for local pension funds and international institutional investors to put their money into Kenyan infrastructure,” he added.
According to the CS, the fund will support high-impact projects across multiple sectors, aiming to strengthen Kenya’s transport, energy, water, and aviation infrastructure.
He further clarified that the fund will be professionally managed with strong governance to prevent misuse of resources.
“Under the MTP IV and Vision 2030 frameworks, the NIF will finance 2,500km of dual carriageways, 28,000km of tarmacked roads, the SGR extension from Naivasha to Malaba and Kisumu, production of 10,000MW of clean energy, 50 mega dams and over 1,200 smaller dams to support irrigation, and the modernisation of JKIA. The NIF is established as a Limited Liability Company with an independent board. All proceeds from privatisations are strictly ring-fenced for infrastructure, ensuring they cannot be diverted to political or recurrent budgets,” CS Mbadi explained.
CS Mbadi concluded by linking the fund’s structure to long-term national ambitions, stressing that one project’s success will finance the next.
“As Hon. John Mbadi puts it, the fund is the primary tool to help Kenya ‘achieve the Singapore dream.’ By leveraging Ksh 106 billion from the KPC IPO, National Treasury intends to mobilise a total of KSh1.2 trillion in the first phase alone, creating a ‘revolving door’ of development where one project’s success funds the next,” the State Department of Public Investments and Asset Management stated.