The National Assembly of Kenya has voted on the National Infrastructure Fund Bill, 2026, terming it a big step towards introducing a new financing model for major development projects in the country.

Taking it to their X handle on Friday, March 6, 2026, the Parliament has confirmed that the bill was passed by lawmakers on Thursday, March 5, 2026, evening, after being debated and amended so that the implementation of the National Infrastructure Fund (NIF) may take place.

The proposed fund is expected to mobilise close to Ksh5 trillion over the next 10 years, transforming the country’s infrastructure financing model, which is heavily dependent on borrowing, into a more sustainable, investment-based model.

“Specifically, the Bill aims to mobilise nearly Ksh5 trillion over the next decade to shift infrastructure financing from a debt-driven model to a sustainable, investment-led approach,” Parliament stated.

When the fund becomes operational, it is believed to fund strategic projects in the most important sectors such as transport, energy, water, irrigation and digital connectivity. Some of the projects that are likely to lose include the construction and improvement of highways, railways, airports, seaports and agribusiness.

Majority Leader Kimani Ichung’wah, who spoke after the bill was passed, said it was one of the most significant pieces of legislation Parliament had ever passed. According to him, the action would offer a long-term guideline to fund major infrastructural projects and contribute to the rapid economic transformation of Kenya.

Ichung’wah observed that despite complaints by several Members of Parliament on several issues of the Bill, the House conducted an extensive debate before making amendments to enhance transparency and oversight.

“Hon. Speaker, this is the most consequential piece of legislation ever passed by this House. In fact, since the approval of the 1965 Sessional Paper No. 10 by the House, I think this is the second most important legislation ever enacted,” Ichung’wah stated.

The exercise of possible undue power by the executive, and in particular the position of the Treasury Cabinet secretary in the control of the fund, had been raised by some legislators. In reaction, legislators came up with bills to strengthen parliamentary checks and balances and to bring good governance provisions to the fund.

Formation of Fund’s governing council

Various amendments were to be made to the fund to enhance accountability and professional management by the Departmental Committee on Finance and National Planning, which was led by Kuria Kimani. The alteration of the fund in forming a governing council that will offer strategic direction and guard the assets of the fund is one of the main changes.

The council will comprise the Cabinet Secretary of the National Treasury, the Governor of the Central Bank of Kenya, the Attorney General, and six professionals appointed by the President for a three-year term.

The council will manage the investment policy of the fund and recruit the board of directors, but the daily operations will not be managed in a way that will jeopardise the independence of the board.

The Bill also proposes tough measures to be taken against misuse of the fund, such as repayment of the amount misappropriated twice, a fine of at least Ksh10 million or serving at least five years in prison. The law is awaiting approval by William Ruto, and then it will become a law.