President William Ruto’s administration has received a major boost after the High Court declined to suspend the implementation of the Sh5 trillion National Infrastructure Fund (NIF).
A three judge bench ruled that the fund will remain in force as the court hears a petition challenging its constitutionality.
However, the judges directed the National Treasury to file certified accounts and transaction reports in court every three months until the case is determined.
The court also ordered that the petition be heard and concluded within 60 days.
The ruling means the government can continue implementing the fund, but under close judicial oversight.
The petition was filed by the Katiba Institute, which argues that the law establishing the fund is unconstitutional and weakens oversight of public finances.
The government has defended the fund, saying it will help finance major infrastructure projects without increasing Kenya’s reliance on borrowing.
President Ruto signed the National Infrastructure Fund Act into law earlier this year, describing it as a key tool for accelerating development.
The fund is expected to raise up to Sh5 trillion over the next 10 years. The money will finance roads, railways, ports, affordable housing, energy and other strategic projects.
The government has also said the fund will attract private investment and reduce pressure on the Exchequer.
Although the court allowed the implementation of the law to continue, it insisted on regular financial reporting by the Treasury to promote transparency and accountability.
The ruling is a significant relief for the Kenya Kwanza administration as it pushes ahead with one of its flagship development programmes.