Kenya has unveiled plans to establish a national sovereign wealth fund and an infrastructure investment fund, aiming to mobilise long-term capital for development projects while reducing reliance on costly external borrowing. President William Ruto announced the initiative during a national economic forum in Nairobi, describing it as “a strategic tool to secure Kenya’s economic future.”
The Kenya Sovereign Wealth Fund (KSWF) will focus on managing surplus internal revenues and returns from natural resources, state investments, and proceeds from the privatization process. Meanwhile, the Infrastructure Investment Fund is expected to attract institutional investors—including pension funds, insurance companies, and foreign sovereign wealth funds—to co-finance key national projects.
Treasury Cabinet Secretary Njuguna Ndung’u emphasized that the funds will be governed under strict transparency and accountability frameworks. “We want to create an investment vehicle that is credible to both Kenyans and the international market. Independent oversight, professional management, and legislative backing will be central,” he said.
The government plans to seed these funds through the sale of state assets, starting with a planned share offer of the Kenya Pipeline Company, which could generate up to 130 billion shillings ($1.01 billion). This move is part of a broader privatization strategy aimed at raising capital for the funds and reducing the country’s debt burden.
The infrastructure fund will prioritize investments in agriculture, Kenya’s largest economic sector, with a focus on improving crop yields and enhancing electricity generation to support industrialization. Currently, Kenya generates 2,300 megawatts of power but needs at least 10,000 megawatts to meet growing demand.
President Ruto emphasized the importance of thinking beyond short-term borrowing, stating, “For too long, we have relied on short-term borrowing to fund long-term development goals. This is unsustainable.” He highlighted that the new funds will pool resources from domestic and international partners to finance priority infrastructure projects in a sustainable manner.
The establishment of these funds marks a significant step in Kenya’s efforts to strengthen its economy and reduce its dependence on external debt. The government aims to have the funds operational in the near future, with the privatization process underway. As the funds become active, they are expected to play a pivotal role in financing critical infrastructure projects and driving economic growth in the country.
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