New Bill locks Kenya's oil, mineral earnings from political use

Kenya now has a legal vehicle to save part of its oil, mineral and privatisation earnings, locking the money away from political misuse and shielding it from debt repayment.

This follows the signing of the Sovereign Wealth Fund Bill, 2026 into law by William Ruto on Wednesday, July 8.

National Assembly Speaker Moses Wetangula, Treasury CS John Mbadi were among officials who attended the ceremony at State House.

"Today, we enshrine in law the institution that will ensure that the prosperity of those assets we create endures for generations," said Ruto.

The law compels at least 30 per cent of all resources channelled into the fund to be locked away for future generations, protecting the savings from misuse and barring their use to service public debt.

It also caps investment management fees at two per cent and bars cash withdrawals within three months of a General Election unless the fund's board, Parliament and the auditor general approve.

Parliament passed the Bill on July 2 after rejecting a proposal for a fourth account that would have allowed part of the fund to be used for debt repayment, retaining instead the original three-account structure.

The Stabilisation Component will use investment returns to cushion the economy against swings in global commodity prices and other shocks.

"Through this fund, Kenya will build a financial buffer against extraordinary shocks, ensuring that a global storm does not become a national crisis," noted Ruto.

The Strategic Infrastructure Investment Component will finance priority projects such as roads and energy using returns from investments, while the Future Generations, or Urithi, Component will build long-term savings from resources that will eventually run out.

Ruto contrasted the new fund with the National Infrastructure Fund, explaining that the latter builds the assets that create wealth while the Sovereign Wealth Fund preserves and grows them.

The law also provides for independent professional management, parliamentary oversight, regular public reporting and auditing.

"Every shilling must be accounted for," added Ruto.