NAIROBI, Kenya, Oct 27 – The National Treasury has published the Sovereign Wealth Fund Bill, 2025, seeking to broaden funding sources and introduce a more flexible investment framework for managing Kenya’s natural resource revenues and strategic public investments.
The draft law comes three weeks after President William Ruto announced plans to establish both a Sovereign Wealth Fund and an Infrastructure Fund to strengthen fiscal stability and promote long-term economic growth.
While retaining the three core components from the 2019 version — the Stabilisation Component, the Strategic Infrastructure Investment Component, and the Future Generation (Urithi) Component — the Bill introduces several governance and structural changes to enhance adaptability.
A key amendment includes adding “proceeds from divestment of government petroleum and mining interests” to the fund’s revenue streams, potentially allowing Kenya Pipeline Company divestment proceeds to be channelled into the fund.
The Bill also proposes that decisions on holding funds in foreign currencies be made in consultation with the Central Bank of Kenya, shifting from the 2019 draft that gave the National Treasury sole authority — a move seen as part of efforts to diversify reserves beyond the US dollar.
Another major change removes the fixed allocation floors across the three components. Unlike the previous Bill, which set minimum percentage allocations, the Cabinet Secretary for the National Treasury will now have discretion to determine allocations annually, offering greater fiscal flexibility amid budget constraints.
In addition, only 50 percent of investment income from the Stabilisation Component will be reinvested into it, with the remaining half directed to the Future Generation Fund to strengthen long-term savings.
The Treasury has invited public and institutional feedback before finalising the Bill.“The National Treasury hereby invites members of the public, government institutions, NGOs, professional bodies, private sector players, and other stakeholders to submit their views on the draft Kenya Sovereign Wealth Fund Bill, 2025,” it said in a notice.
