Kenya's New Infrastructure Fund Sparks Transparency Concerns Over Executive Control
Kenya has introduced the National Infrastructure Fund Act, 2026 to boost investment in major projects. The law aims to speed up development by mobilising capital outside traditional budget processes. But concerns have been raised about how the Fund will operate and who will oversee it.
The new Act allows the government to channel money from privatisation deals and share sales directly into the Fund. These funds will bypass the usual Consolidated Fund and parliamentary approval, giving the Executive branch more control over spending.
The Treasury Cabinet Secretary will lead the Governing Council, which sets the Fund's investment policies. This centralises decision-making power within the government. The Fund can also create special investment vehicles, making it harder to track how national assets are used. Critics warn that the system could function like a 'shadow treasury,' operating without standard democratic checks. The Fund's own Board will approve transactions, forming a separate financial system alongside parliamentary oversight. So far, no specific projects or funding details have been announced under the new law.
The Act shifts financial authority away from Parliament and into the hands of the Executive. It also introduces new investment structures that may complicate transparency. While the goal is faster infrastructure development, the lack of public oversight remains a key issue.
