Questions asked on Sh5tr Infrastructure Fund debt, oversight
National
By
Josphat Thiongó
| Mar 07, 2026
The Kenyan Parliament or the National Assembly building in Nairobi. [Wilberforce Okwiri, Standard]
After a week of intense debate and divisions, the National Assembly on Thursday approved the controversial National Infrastructure Fund Bill, albeit with amendments.
The Bill seeks to mobilise Sh5 trillion over the next ten years, seeking to transform the country’s infrastructure financing model, from one heavily dependent on borrowing to a more sustainable, investment-driven framework.
It establishes the National Infrastructure Fund (NIF), designed to mobilise resources for key projects across sectors including transport, energy, water, irrigation and digital connectivity. The Fund is also intended to support the development of highways, railways, ports, agribusiness infrastructure and other strategic national projects.
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According to details in the NIF Bill, the fund will be supported by diverse revenue streams, including proceeds from privatisation and the sale of shares in government-linked corporations.
The proposed law was approved after two days of rigorous debate in the House, covering the Second Reading and the Committee of the Whole House’s consideration of amendments.
“Mr Speaker, this is the most consequential piece of legislation ever passed by this House. In fact, since the approval of the 1965 Sessional Paper No. 10, I believe this is the second most important legislation ever enacted,” said Leader of the Majority Party Kimani Ichung’wah shortly after its approval.
The Bill had earlier faced opposition from some MPs, who raised concerns over the lack of robust oversight, the extensive powers granted to the Treasury Cabinet Secretary in administering the Fund and perceived Executive overreach.
“This board has been given sweeping powers… even if it prioritises projects… why is the CS sitting at the centre of control? That is not oversight, that is control. Consolidation precedes abuse,” said Mukurwe-ini MP John Kaguchia during the debate.
Notably, the Bill as initially drafted proposed a board of nine directors, including a chairperson, the Treasury CS or their representative, four independent directors, two individuals with senior leadership experience in development banking and a chief executive officer.
Once appointed by the CS, the same official was to determine the directors’ remuneration and also sign and review their performance contracts.
Kathiani MP Robert Mbui also criticised the Bill, noting it lacked safeguards to ensure that the Fund’s resources would be distributed equitably across the country.
“With this fund, there’s no way of fair distribution. It seems we are passing it for the next election. Kenyans will stop us,” he said.
Concerns were also raised over the Fund being used to accumulate more debt and the lack of Parliament’s oversight role.
Several amendments were, however, introduced, with key measures aimed at strengthening parliamentary oversight.
To safeguard the Fund’s integrity, the Departmental Committee on Finance and National Planning proposed a series of amendments to enhance transparency, accountability and professional management.
“A person who misappropriates any funds is liable to pay twice the amount misappropriated and faces a fine of at least Sh10 million or imprisonment for not less than five years,” a new clause states.
Committee chair Kimani Kuria, while moving the amendments in the Committee of the Whole House, explained that the Bill now clearly defines the projects eligible for financing, including national highways, railway networks, airports, and seaports.
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