A bill before Parliament proposes the establishment of a National Infrastructure Fund expected to mobilise about Sh5 trillion to finance major long-term projects, in a move aimed at reducing reliance on public debt and taxation for infrastructure development.

The National Infrastructure Fund Bill, 2026, sponsored by National Assembly Majority Leader Kimani Ichung’wah, seeks to create a fund that will invest in key projects including roads, railways, ports, irrigation and energy.

According to the bill, the fund is intended to shift infrastructure financing towards an investment-led model designed to attract private capital.

Among projects listed as potential beneficiaries are the Loosuk–Lessos power transmission line, the Galana-Kulalu irrigation project, the Rironi–Naivasha–Mau Summit highway and the Standard Gauge Railway (SGR) extension to Malaba — a project President William Ruto has recently insisted should not be funded through loans.

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Clause 6 of the bill proposes that the fund will operate like a limited liability company run by a Board of Directors. The board would comprise a chairperson, the Cabinet Secretary for the National Treasury (or a representative), four independent directors, and a chief executive officer serving as an ex-officio member.

While the bill provides that directors will be recruited through a competitive process, they would still be appointed by the Treasury CS through a gazette notice. The Cabinet Secretary would also sign performance contracts with the board and evaluate the fund’s performance.

The proposed governance structure further states that the fund would submit its reports first to the Cabinet Secretary, who would then forward them to the Cabinet and the National Assembly, with disclosures published on the Treasury website.

However, critics have raised concerns over the level of influence the National Treasury would have over the fund and the safeguards in place to prevent abuse.

The debate comes against the backdrop of past infrastructure-related controversies and stalled projects, including the Arror and Kimwarer dams and delayed SGR extensions, which have previously raised questions over oversight and accountability in public financing.

Members of the public have been invited to submit views on the bill before February 20, 2026.