The Cabinet’s approval of a Sh5 trillion National Infrastructure Fund (NIF) has once again placed Kenya’s public finances under the spotlight, sparking fresh debate over how national government funds are created, managed and held accountable.
The decision, made on December 15, 2025, signals the government’s ambition to accelerate development through large-scale infrastructure investment as it pushes towards its vision of transforming Kenya into a first-world economy. But it has also raised questions among Kenyans about the growing number of funds managed by the national government and how effectively they are overseen.
Kenya’s system of public finance is anchored in Chapter 12 of the Constitution of Kenya (2010) and operationalised through the Public Finance Management (PFM) Act. Together, they give the Executive under the watchful eye of Parliament the power to establish and manage public funds for governance, development, social protection and economic empowerment.
The newly approved National Infrastructure Fund joins other major national funds, including the Sovereign Wealth Fund, marking what the government describes as a new phase in the country’s development journey.
At the heart of the system is the Consolidated Fund, the government’s main account into which all national revenue is paid. Established under Article 206 of the Constitution, the fund finances both day-to-day government operations and development projects. Withdrawals are tightly regulated and can only be made through an Appropriation Act passed by Parliament, except in cases such as public debt repayments, pensions and salaries of constitutional officeholders.
For emergencies, the government turns to the Contingencies Fund, created under Article 208. This fund allows the state to respond quickly to urgent and unforeseen needs, with the requirement that the Cabinet Secretary later seeks Parliament’s approval for the spending.
Another constitutionally protected fund is the Equalisation Fund, established under Article 204. It is designed to support marginalised areas by financing basic services such as water, roads, health facilities and electricity. Each year, it receives 0.5 per cent of the national government’s revenue, based on the most recent audited accounts approved by Parliament, with the aim of narrowing development gaps across the country.
The Judiciary Fund, provided for under Article 173, guarantees the financial independence of the courts. Its budget is charged directly to the Consolidated Fund, insulating the Judiciary from interference by the Executive.
Beyond the Constitution, Parliament has also established other key funds through legislation. These include the National Government Constituencies Development Fund (NG-CDF) and the National Peace Support Operations Fund, which operate under their own Acts and the PFM framework.
In addition, the government runs several social and enterprise funds meant to support livelihoods and social protection. These include the Youth Enterprise Development Fund, Women Enterprise Fund, Uwezo Fund, the Higher Education Loans Board (HELB), the National Social Security Fund (NSSF) and the Social Health Insurance Fund (SHIF).
As the scale of public funds continues to grow, the approval of the Sh5 trillion infrastructure fund has reignited calls for stronger oversight, transparency and clear reporting reminders that while ambitious development plans are important, public trust ultimately rests on how well public money is managed.