Kenya Approves £30 Billion Infrastructure Fund to Transform National Development
Nairobi, 7 March 2026
Kenya’s National Assembly has passed legislation establishing a massive infrastructure fund targeting 5 trillion shillings (£30 billion) in public and private investment. The National Infrastructure Fund Bill covers transport, energy, and digital infrastructure projects across the country. A crucial amendment requires all fund money to be held at the Central Bank of Kenya, with operational accounts permitted at commercial banks for investment purposes. This represents one of Africa’s largest infrastructure financing initiatives, potentially transforming Kenya’s economic landscape through improved roads, energy systems, and digital connectivity nationwide.
Parliamentary Approval and Fund Structure
The National Assembly’s approval of the National Infrastructure Fund Bill No.1 of 2026 on 6 March represents a pivotal moment in Kenya’s development strategy [1]. The legislation targets mobilising 5 trillion Kenyan shillings ($38.7 billion) through combined public and private sector investments into the newly established National Infrastructure Fund (NIF) [1]. This ambitious financing mechanism will support construction of transport, energy and digital infrastructure projects across the nation [1].
Critical Amendment on Fund Management
A significant amendment to Clause 31 emerged during parliamentary proceedings, fundamentally altering how the fund’s finances will be managed [2]. The original draft bill permitted the fund administrator to open bank accounts at any institution regulated by the Central Bank of Kenya [2]. However, the floor amendment mandated that all fund monies and income must be held strictly in a bank account at the Central Bank of Kenya itself [2]. The revised legislation does allow the Fund to operate additional bank accounts at commercial banks specifically for investment and operational purposes [2]. One legislator raised concerns about how centralising the Fund’s money within the Central Bank would align with Kenya’s planned transition to a Treasury Single Account system, questioning whether the National Treasury had been properly consulted on this matter [2].
Regional Development Implications
The infrastructure fund’s scope encompasses transport, energy and digital connectivity projects that could significantly impact underserved regions across Kenya [1]. For northern counties like Turkana, where Kakuma and Kalobeyei refugee camps are located, improved road networks and energy systems could enhance living conditions for both refugee populations and host communities [GPT]. The fund’s emphasis on digital infrastructure development may also bridge connectivity gaps that have historically limited economic opportunities in remote areas [1].
Economic Scale and Continental Context
At $38.7 billion, this initiative represents one of Africa’s most substantial infrastructure financing programmes, reflecting Kenya’s ambition to accelerate economic transformation through systematic infrastructure development [1]. The combination of public and private sector investment strategies suggests a mixed financing approach designed to leverage both government resources and commercial capital markets [1]. The fund’s establishment comes at a time when Kenya seeks to position itself as a regional economic hub, with infrastructure quality serving as a critical competitive advantage in attracting investment and supporting trade flows [GPT].