Kenya's New Infrastructure Fund Sparks Accountability Concerns Over Financial Control
Kenya's new National Infrastructure Fund Act, 2026, aims to speed up major projects by mobilising fresh capital. The law also shifts financial control away from traditional parliamentary oversight. Critics warn it could create a system with little public accountability.
The Act allows the Fund to manage its own expenditures, investments, and transactions. This sets up a financial structure running alongside the usual parliamentary budget process. Proceeds from privatisation and government share sales can now flow directly into the Fund, bypassing the Consolidated Fund and lawmakers' approval.
The Governing Council, chaired by the Treasury Cabinet Secretary, holds broad powers over investment decisions. This centralises authority within the Executive branch, reducing checks from other government bodies. The Fund can also establish special purpose vehicles and complex investment structures, making it harder to track national assets or ensure open debate.
Critics argue the system risks forming a 'shadow treasury' outside democratic controls. Without clear details on the number of projects financed or the role of private investors, transparency remains a concern.
The Fund's Board now approves spending and investments independently of parliamentary scrutiny. Its ability to create separate financial entities further complicates oversight. The Act's long-term impact on Kenya's public finances and accountability mechanisms will depend on how these powers are exercised.
