The National Assembly's Departmental Committee on Finance undertakes public participation on the Sovereign Wealth Fund Bill, 2026, and the Public Finance Management (Amendment) Bill 2025 (National Assembly Bill No.17 of 2025) today.[File,Standard]
The National Assembly's Departmental Committee on Finance will undertake public participation on two Bills, the Sovereign Wealth Fund Bill, 2026, and the Public Finance Management (Amendment) Bill 2025 (National Assembly Bill No.17 of 2025), starting today. The Sovereign Wealth Fund Bill, 2026, seeks to provide a legal framework for the establishment and management of the Sovereign Wealth Fund, while the Public Finance Management (Amendment) Bill 2025 (National Assembly Bill No. 17 of 2025) is to amend the Public Finance Management Act to ensure there shall be no duplication in management of additional allocations through intergovernmental agreements. Both bills have been sponsored by the Leader of the Majority Party in the National Assembly, Kimani Ichung'wah. If enacted to law, the Sovereign Wealth Fund Bill, 2026 Bill will provide a strategic framework to transform Kenya's natural resources wealth into long-term financial resilience by establishing a tripartite structure, Stabilization, Infrastructure, and Future Generations components. It will also provide a framework for commitment to intergenerational equity, ensuring that the proceeds from non-renewable resources are invested in diversified global assets to benefit future citizens. Under the Bill, a Sovereign Wealth Fund will be established, managed, and invested for the benefit of current and future generations of Kenyans. The Fund will have distinct components, including the stabilisation component, strategic Infrastructure Investment component, and the future generations component. "An account for each of the components of the Fund shall be opened and maintained at the Central Bank of Kenya. The objective of the Fund is to achieve long-term fiscal sustainability and intergenerational wealth sharing," the Bill states. The purpose of the Fund will be to provide the national government with a buffer against fluctuations in resource revenues or extraordinary shocks, provide finance for strategic infrastructure, investment priorities to foster strong and inclusive growth and development, and build a savings base for future generations when minerals and petroleum resources are exhausted. The proposed law was published on March 9 and read for the first time on March 11, 2026, and was then committed to the Departmental Committee on Finance and National Planning for its consideration and tabling of a report. As far as the Public Finance Management (Amendment) Bill 2025 (National Assembly Bill No. 17 of 2025), it was published on April 24, last year, and read for the first time on December 2, before being committed to the committee for consideration and tabling of the report. The Bill further intends to amend the PFM Act by repealing sections 191A-191E, thereby providing for intergovernmental agreements on additional allocations to the county governments. According to the Bill, the National Treasury shall enter into an agreement with the respective county government for the transfer of the respective conditional allocation made to the county government pursuant to this Act. An agreement will set out any conditions that may be attached to the conditional allocations made under the Act, and where a county government intends to enter into an agreement, the county executive committee member shall submit the agreement to the respective County Assembly for approval. The bill states that the National Treasury shall, within seven days of entering into an agreement, submit to the Senate and the Controller of Budget, the agreement together with any other documents relating to the agreement. "The National Treasury shall publish and publicize all agreements entered. Requisition of funds from the county revenue fund for the purposes of a conditional grant shall be supported by the intergovernmental agreement," the Bill states.