President William Ruto has announced that the expansion of Jomo Kenyatta International Airport (JKIA) will be the first major project to be financed under the newly established National Infrastructure Fund (NIF).
The Head of State made the announcement on Monday, March 9, shortly after signing the National Infrastructure Fund Bill into law at State House Nairobi.
According to the President, the fund has been designed to mobilise more than Ksh5 trillion over the next ten years to finance large-scale infrastructure development projects across the country.
Speaking during the signing ceremony, Ruto said the expansion of JKIA will mark the beginning of a new model of financing infrastructure in Kenya, shifting from heavy reliance on borrowing to investment-based funding.
“I am pleased to announce that the expansion of JKIA will be the first major project financed under this new model of financing under the National Infrastructure Fund,” the President said.
The government plans to inject Ksh20 billion as seed capital for the airport expansion project. According to Ruto, the funds will come from proceeds generated through the sale of shares in the Kenya Pipeline Company.
The President also encouraged institutional investors, including pension funds and insurance companies, to participate in the new fund and support the financing of major infrastructure projects.
“We have just announced the contract for the expansion of JKIA, and we will use Ksh20 billion from the proceeds of the Kenya Pipeline IPO as seed money for the project,” Ruto added.
He noted that the government is keen on attracting private sector participation in infrastructure development through the fund.
The National Infrastructure Fund will operate as a corporate entity, giving it the authority to own property, enter into contracts and invest directly in development projects. However, the law prohibits the fund from borrowing or taking credit against its balance sheet.
Treasury Cabinet Secretary John Mbadi said the fund will be overseen by a seven-member Board of Directors led by an independent chairperson.
The board will also include the Treasury Cabinet Secretary, four independent directors and two development banking experts.
To safeguard the independence of the fund, individuals who have recently served in government or have active political affiliations will not be eligible for appointment to the board.
Mbadi added that the board will report to the Treasury four times annually, while the Treasury will provide updates to the Cabinet at least twice a year and submit reports to the National Assembly of Kenya once every year.
The government believes the fund will play a critical role in accelerating infrastructure development and supporting Kenya’s long-term economic growth.
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