President William Ruto has announced plans for Kenya to invest money from the privatisation of state-owned enterprises in sovereign wealth and infrastructure funds.
For decades, the proceeds from privatisations were absorbed into the recurrent budget, paying salaries and debts instead of building long-term public wealth, a trend that Ruto says will now end.
Speaking at the Jamhuri Day celebrations on Friday December 12, 2025, the Head of State announced that all proceeds from privatisations would be ring-fenced in two new national funds: the National Infrastructure Fund (NIF) and the Sovereign Wealth Fund (SWF).
“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,” Ruto stated.
The Infrastructure Fund will channel proceeds strictly into public projects, ensuring every shilling creates enduring value.
The President added that the government’s target is bold; for every shilling invested, ten more will be attracted from pension funds, sovereign partners, private equity, and development finance institutions.
Closely linked to the NIF is a second instrument, SWF, anchored on three pillars: savings for future generations, stabilisation against global shocks, and strategic national investments.
From President Ruto’s address, the Cabinet will consider approving the SWF on Monday, December 15, 2025.
At the same time, the Cabinet is set to approve the Sovereign Wealth Fund policy, anchored on three pillars: savings for future generations, stabilisation against global shocks, and strategic national investments.
“Natural resource royalties, dividends from public investments and a percentage of privatisation proceeds will capitalise this fund,” President Ruto explained.
The Sovereign Wealth Fund will enforce inter-generational equity, ensuring today’s resources benefit both current and future Kenyans, in line with Article 201(c) of the Constitution.
Together, the two funds form part of Ruto’s Sh5 trillion economic freedom project, which aims to transform Kenya into a first-world economy through bottom-up growth.
But the President cautioned that even the strongest financing systems will fail without integrity, peace, and strategic human capital development, the foundation of Kenya’s economic freedom journey.
