Deputy President Kithure Kindiki has urged international investors to channel private capital into Kenya’s newly established National Infrastructure Fund (NIF), unveiling an ambitious Sh3.5 trillion financing plan to transform the country's infrastructure and accelerate economic growth.
Kindiki said the fund was designed to mobilise substantial private sector investment to finance major development projects, including modern roads, railways, seaports, airports, renewable energy facilities and water infrastructure.
Speaking during the Heads of Government and Business Leaders Meeting at the 28th Commonwealth Heads of Government Meeting (CHOGM) in St John's, Antigua and Barbuda, the Deputy President presented Kenya as an attractive investment destination, calling on global business leaders to take advantage of the opportunities created by the fund.
He disclosed that the government had committed an initial Sh350 billion through the partial divestiture of government assets, with the remaining Sh3.16 Trillion expected to come from private investors.
The arrangement is expected to establish an initial capital base of Sh3.5 Trillion, providing long-term financing for infrastructure projects considered critical to Kenya's economic transformation.
Kindiki explained that the government intended to use the fund to modernise the country's transport network, strengthen connectivity and reduce logistical costs for businesses.
Under the proposed investment framework, priority areas include the expansion and modernisation of roads, railways, seaports and airports, alongside investments in renewable energy to support industrialisation.
The fund will also support the development of water infrastructure, with the government targeting an additional 2.5 million acres of land under irrigation to strengthen agricultural productivity, improve food security and create employment opportunities.
Kindiki said the financing model would rely heavily on public-private partnerships (PPPs), with the government seeking to leverage its initial contribution to attract significantly larger investments from the private sector.
“Each dollar invested by the government is to attract 10 dollars from the private sector through a Public-Private Partnership anchored by law,” he said.
The Deputy President said the approach would allow Kenya to mobilise resources beyond traditional government financing, particularly at a time when infrastructure development requires substantial capital investment.
He further assured potential investors that the fund would operate under an independent governance structure designed to promote accountability, transparency and commercial discipline.
According to Kindiki, the NIF would be managed by an independent board comprising representatives from both the public and private sectors, with investment decisions guided by commercial viability assessments.
He told the conference that projects financed through the fund would be evaluated on their ability to generate sustainable returns rather than political considerations.
“Informed the gathering that the NIF is run by an independent board, with a mix of public and private sector directors and its investment decisions will be purely run on commercial viability assessment,” Kindiki said.
Kenya's infrastructure financing ambitions come amid growing pressure on governments to explore alternative funding models as demands for roads, energy, transport and agricultural infrastructure continue to rise.
By attracting private capital, the government hopes to accelerate the implementation of strategic projects while reducing reliance on direct public borrowing and conventional budgetary allocations.
