NAIROBI, Kenya, Oct 5 — President William Ruto says the government is establishing two new funds — an Infrastructure Fund and a Sovereign Wealth Fund — aimed at securing Kenya’s long-term economic stability and promoting prudent investment of public resources.
Speaking in Vihiga County on Sunday, Ruto said the initiative is anchored on ensuring a stronger economic future for the country.
“We are in the process of setting up two important funds — one for infrastructure and another, the sovereign wealth fund, which we are going to roll out soon,” he said.
“We must think about tomorrow.”
The Head of State said the twin funds will play a key role in promoting sustainable development by channeling resources into long-term national priorities and shielding the economy from shocks.
Ruto’s remarks have revived debate over the Sovereign Wealth Fund Bill of 2019, which sought to establish a National Sovereign Wealth Fund to manage surplus revenues from oil, gas, minerals, and state-owned enterprises.
The bill, introduced under the Uhuru Kenyatta administration, aimed to promote intergenerational equity and provide a buffer against future economic downturns.
However, it stalled in Parliament amid questions over governance structures and sources of financing.
Easing debt pressure
The President’s renewed push could see the proposal revived in the National Assembly, as the government seeks innovative financing models to ease pressure from rising debt obligations.
The proposed Infrastructure Fund, meanwhile, is expected to support major public projects and reduce reliance on commercial borrowing and infrastructure bonds — a move that could significantly reshape Kenya’s fiscal landscape.
It comes months after the Finance Bill 2024, backed by the International Monetary Fund (IMF), proposed the introduction of a withholding tax on infrastructure bonds, a measure that rattled markets and triggered investor unease.
Ruto’s announcement coincides with the visit of an IMF mission led by Haimanot Teferra, currently in Nairobi for discussions with the government on a new financial support programme.
The mission, which began in late September, follows Kenya’s request for renewed IMF engagement after the Extended Fund Facility (EFF) and Extended Credit Facility (ECF) programmes stalled earlier this year.
The IMF team is expected to review Kenya’s fiscal consolidation efforts, public debt strategy, and structural reforms — areas directly linked to how the government manages new financing instruments such as the proposed funds.
The timing of Ruto’s announcement has sparked speculation that it may be a deliberate signal of Nairobi’s commitment to fiscal discipline and economic sustainability during the ongoing IMF negotiations.
