Why national assets will be sold to fund roads, railway projects

President William Ruto during 62nd Jamhuri Day celebrations at Nyayo Stadium.[PCS]

President William Ruto used the 62nd Jamhuri Day celebrations to remind Kenyans that his proposed Sh1.5 trillion National Infrastructure Fund (NIF) is gaining momentum and will be considered by Cabinet on Monday for approval.

The President’s plan to sell what he calls mature national assets to raise funds for roads, railways, seaports, airports and dam construction has faced criticism from opposition figures and some economic experts, who argue that Kenya’s biggest problem is corruption, not a shortage of funds.

“Three weeks ago, I signed the Government-Owned Enterprises Bill into law. This legislation revolutionises the governance and management of State-owned enterprises by professionalising boards through merit-based, independent appointments and tying leadership to measurable results,” said Ruto.

But critics, including former Attorney General Justin Muturi, a member of the United Opposition, say Kenyans are already overtaxed and overburdened, and that the country does not need another fund, levy, or loan.

“What Kenya needs is discipline, integrity and competence in the management of public funds,” said Muturi, who is also Democratic Party (DP) leader and Ruto’s former Cabinet Secretary for Public Service.

The NIF is part of Ruto’s Sh5 trillion National Economic Freedom project, which aims to reduce reliance on the national budget or borrowing to fund development projects.

Ruto argued that borrowing would only deepen debt and burden future generations, while raising taxes would place an unbearable strain on households.

“Through innovative mobilisation of domestic resources, strategic monetisation of mature national assets, democratisation of ownership through capital markets, and innovative deployment of national savings, we will unlock large-scale private sector capital to fund our national priorities while reducing reliance on borrowing and taxation,” he said. 

He warned that inaction would condemn the country to stagnation, emphasising the need to act with courage, innovation and foresight to design alternative financing mechanisms, leverage mature national assets, and tap into robust public–private partnerships.

The President said new professional management boards will be appointed to manage the NIF and other funds, describing the initiative as the most far-reaching reform of government corporations since independence.

Ongoing road construction project. [File, Standard]

“Passage of this law ends the era of cronyism and patronage in State-owned enterprises, with this law explicitly disqualifying any person who has served in a public or political office within the last 5 years from appointment,” said Ruto. 

Under the new legal framework, the Cabinet will consider and approve the architecture of the NIF, which will align Kenya’s financial resources with its development goals.

The President argued that for decades, Kenya privatised major assets, including Kenya Airways, KenGen, Kenya Re and Safaricom, yet proceeds were absorbed into the national budget to pay salaries and debts, leaving no enduring national assets behind.

Through the NIF, Ruto assured Kenyans that all privatisation proceeds will be ring-fenced and invested strictly in public infrastructure that generates and preserves value.

“For every shilling in the National Infrastructure Fund, we will attract Sh10 more from long-term investors, including pension funds, sovereign partners, private equity and development finance institutions, allowing us to develop without the constraints of debt and taxation,” said Ruto.

He added that the NIF will not merely be a financing instrument, but a generational strategy to mobilise capital, accelerate delivery, preserve value and secure Kenya’s long-term competitiveness.

Last month, Ruto said Kenya needs at least another 10,000 kilometres of tarmac roads to transport agricultural produce and grow the economy, requiring Sh1.5 trillion to implement the programme.

However,Muturi cautioned that such proposals should only be actualised after consulting Kenyans and building trust; otherwise, he warned, it risks being an abuse of power.

Ruto also highlighted three critical enablers for economic empowerment: strategic human capital development, robust peace and security, and unwavering integrity and fidelity to national interests.

“Even the strongest financing systems, boldest infrastructure plans and most ambitious economic strategies will fail if we do not secure the foundation of our national character,” he said.

To strengthen human capital, the government has increased investments in education, skills development, and science and innovation, raising the education budget from Sh490 billion in 2021 to over Sh700 billion this year, while expanding Science, Technology, Engineering and Mathematics education.

“But to power our first world strategic human capital requirements, we must and will raise the national research fund from the current 0.8 per cent to the requisite 2 per cent  of GDP, this is not social spending; it is nation-building,” said Ruto.

He urged Kenyans to promote peace, stability and security, arguing that no nation can prosper amid disruption and violence, which harm the economy, property and lives.

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