Keypoints:
- Ruto unveils sovereign and infrastructure funds
- Privatisation to raise seed capital
- Focus on farming, energy, and industry
KENYA has announced plans to establish a sovereign wealth fund and an infrastructure fund to finance development without repeating the debt-fuelled spending of the past decade, President William Ruto said at the weekend.
The president said the twin funds would help channel investment into priority sectors while reducing the country’s reliance on costly external borrowing. ‘We are in the process of having two important funds — one infrastructure fund, and the other, which we are going to roll out, a sovereign wealth fund,’ Ruto said.
Kenya’s debt repayment burden remains among the highest in Africa, after years of borrowing to finance major infrastructure projects such as roads, railways, and ports.
Privatisation to finance the new vehicles
Ruto said a newly enacted privatisation law will allow the government to raise funds by selling stakes in state-owned companies to investors. The proceeds will serve as seed capital for the two new funds.
‘As responsible citizens of the present, we must think about the generations of tomorrow and keep something for them, so that tomorrow, they have a place to start,’ he said.
The privatisation drive will begin with the Kenya Pipeline Company, which operates the country’s petroleum transport network extending into neighbouring states. Ruto said the share sale could generate up to KSh130bn (about $1.01bn).
Focus on farming, energy, and industry
The infrastructure fund will prioritise agriculture, Kenya’s largest economic sector, by boosting crop production for export. ‘We want to ensure farmers can produce enough not only for local consumption but also for export,’ Ruto said.
He added that the funds will also support the expansion of electricity generation, a critical enabler of industrial growth. Kenya currently produces about 2,300 megawatts of power, but needs at least 10,000 megawatts to industrialise, according to Ruto.
‘For far too long, we have been on an average trajectory, and that is why we are not making progress,’ he said, pledging to make Kenya’s growth path more ambitious and sustainable.
While Ruto did not give a timeline for when the funds will become operational, his administration says they will be designed to attract private capital and build long-term fiscal resilience.
