President William Ruto has announced a major shift in how Kenya will handle money raised from privatising state-owned enterprises, promising to end decades of a system where such funds disappeared into recurrent spending instead of building long-term national wealth.
Speaking during Jamhuri Day celebrations at Nyayo Stadium on Friday, December 12, the President said the government will now ring-fence all privatisation proceeds into two new instruments: the National Infrastructure Fund (NIF) and the Sovereign Wealth Fund (SWF).
For years, revenue from the sale of public firms has largely gone toward paying salaries, plugging deficits, or settling debts an approach critics say left the country with little to show for assets painstakingly built over generations. Ruto said that era is now over.
“The National Infrastructure Fund will not just be a financing instrument; it will be a generational strategy to mobilise capital, accelerate delivery, preserve value and secure Kenya’s long-term competitiveness,” the President said.
Under the new framework, the NIF will invest exclusively in public infrastructure, with the government expecting each shilling to attract up to ten more from pension schemes, development finance institutions, private equity, and global sovereign partners.
The President framed the move as a bold attempt to ensure that privatisation benefits Kenyans for decades, not just through annual budgets but by strengthening public assets such as transport networks, energy systems, and urban development.
Closely tied to the NIF is the proposed Sovereign Wealth Fund, which Ruto said the Cabinet will consider for approval on Monday, December 15.
Three Pillars for a Stable Future
The SWF will rest on three pillars:
Savings for future generations
Protection against global economic shocks
Strategic national investments
It will be capitalised through natural resource royalties, dividends from state investments, and a share of proceeds from privatisation.
Ruto said the fund is anchored in the Constitution’s commitment to inter-generational equity, ensuring wealth created today benefits both current Kenyans and those yet to be born.
Part of a Sh5 Trillion ‘Economic Freedom’ Agenda
The two funds form part of the President’s broader Sh5 trillion economic freedom blueprint, which aims to propel Kenya toward first-world economic status through bottom-up growth and aggressive investment in infrastructure, energy, and industry.
But Ruto also cautioned that strong financial instruments alone are not enough.
He stressed that Kenya’s long-term prosperity depends on “integrity, peace, and strategic human capital development,” warning that without these foundations, even the most ambitious economic plans risk falling short.
As the country marks 62 years of independence, the new funds signal an attempt to rethink how national assets are handled with an eye on a future where Kenya not only spends smarter, but also saves and invests like the global economies it seeks to join.
