Cabinet Greenlights Ksh5 Trillion Fund for Mega Projects
Landmark Decision for Economic Growth
On December 15, the Cabinet approved a Ksh5 trillion National Infrastructure Fund. Moreover, the decision marks a milestone in Kenya’s plan to accelerate economic growth.
Sovereign Wealth Fund Endorsed
The government endorsed the Sovereign Wealth Fund to mobilize local resources. Additionally, the fund aims to strengthen Kenya’s financial standing and resilience.
Structure of the Infrastructure Fund
The Cabinet approved the fund as a limited liability company. Consequently, it will mobilize and deploy capital into priority infrastructure projects.
Innovative Financing Approach
The funds will use creative financing instead of traditional taxation. They will tap domestic resources, sell mature assets, and attract foreign investors.
Privatization Proceeds Allocated to Infrastructure
The government will dedicate all privatization proceeds strictly to infrastructure investment. Therefore, transparency and accountability will guide resource allocation.
Sovereign Wealth Fund Objectives
The Sovereign Wealth Fund will manage revenues from minerals, petroleum, dividends, and privatization. Furthermore, it will strengthen fiscal discipline and preserve wealth for future generations.
Development Goals Supported by Funds
The two funds will boost food security, improve transport, and expand energy for industry and the digital economy. Additionally, they will enhance Kenya’s global competitiveness.
Food Security Projects Planned
The government will construct 50 mega dams, 200 mini-dams, and 1,000 micro dams. Consequently, 2.5 million acres will be irrigated to support rural livelihoods.
Transport and Logistics Expansion
Kenya will dualize 2,500km of highways and tarmac 28,000km of roads. Moreover, the Standard Gauge Railway will be extended to Malaba.
Oil, Ports, and Airports Upgrades
The government will expand oil pipelines and modernize Mombasa and Lamu ports. Additionally, airports will undergo revamps to meet global standards.
Energy Sector Transformation
Kenya will add 10,000 megawatts in seven years. Therefore, geothermal, hydro, solar, wind, and nuclear energy will power manufacturing and digital expansion.
Governance and Management Framework
A competitively appointed board and CEO will oversee the Infrastructure Fund. Meanwhile, the Sovereign Wealth Fund will operate under a robust policy framework.
