NAIROBI, Kenya Mar 6 – The National Assembly has passed the National Infrastructure Fund (NIF) Bill, 2026, a landmark legislation set to transform how the country finances and manages its largest development projects.The new law aims to mobilise nearly Sh5 trillion over the next decade, shifting from a debt-driven approach to a sustainable, investment-led model. The Fund will also support the development of highways, railways, ports, agribusiness infrastructure, and other strategic national projects.Unlike previous models that relied heavily on borrowing to finance major infrastructure, the NIF is designed to attract investment from both the public and private sectors.Following robust debate during the Second Reading and consideration of amendments at the Committee of the Whole House, Majority Leader Kimani Ichung’wah thanked MPs for supporting what he described as a transformative piece of legislation.“Hon. Speaker this is the most consequential piece of legislation ever passed by this House. Infact since the approval of the 1965 Sessional Paper No. 10 by the House, I think this is the second most important legislation ever enacted”, he stated.While acknowledging that a number of Members of Parliament had opposed the Bill, Ichung’wah commended lawmakers for presenting their concerns during debate.He also sought to allay fears over the viability of the Fund, emphasising that the multi-trillion-shilling initiative is intended to propel Kenya toward first-world status.The Bill had faced opposition from some legislators who raised concerns about oversight and the possibility of excessive Executive influence, particularly regarding the powers of the Treasury Cabinet Secretary.However, several amendments were introduced to strengthen parliamentary oversight of the Fund. The expanded role of Parliament was among the key proposals made by stakeholders and members of the public during consultations on the Bill.To ensure the Fund’s integrity and effectiveness, the Departmental Committee on Finance and National Planning, chaired by Molo MP Kuria Kimani, proposed a series of safeguard amendments aimed at enhancing transparency, oversight, and professional management.One of the most significant changes is the establishment of a Governing Council, a high-level body that will provide strategic direction and serve as an additional layer of protection for the Fund’s assets.The Council will comprise, among others, the Cabinet Secretary for the National Treasury as Chairperson, the Governor of the Central Bank of Kenya, and the Attorney-General.Six non-public officers with proven leadership in finance or public policy, appointed by the President for a three-year term, will also serve on the Council.Its mandate includes overseeing the Fund’s Investment Policy and recruiting the Board of Directors. However, the law expressly bars the Council from interfering with day-to-day operations to safeguard the Board’s independence.The House also introduced measures to insulate the Fund from political interference by restructuring the Board of Directors. Under the amendments, four independent directors must now be recruited competitively by the Governing Council.Board members will be selected from professionals holding degrees in fields such as finance, engineering, or law, and must have at least ten years of professional experience.To strengthen integrity safeguards, disqualification criteria were introduced to bar individuals currently serving on another state corporation board, as well as those with certain criminal convictions.Notably, the role of the Chief Executive Officer was expanded to include that of Administrator of the Fund, creating a streamlined and cost-effective reporting structure.In a move aimed at strengthening parliamentary oversight, MPs also approved a new mechanism for approving how the Fund will be appropriated.Under the amendments, the Treasury Cabinet Secretary will be required to submit the Fund’s Investment Policy to the National Assembly for approval, with the House given 90 days to approve, amend, or reject it.Lawmakers further introduced strict punitive measures to deter the misuse of funds.“A person who misappropriates any funds… is liable to pay twice the amount misappropriated and faces a fine of at least ten million shillings or imprisonment for not less than five years,” the new clause states.Supporting the provision, Ichung’wah noted that the original Bill had lacked strong deterrent measures against misappropriation and said the stiff penalties were necessary to ensure prudent management of the Fund.“Hon. Speaker, I find these stringent punitive measures quite justified. If you do not want to be subjected to these penalties, do not attempt to misappropriate this Fund”, he cautioned.While moving the Committee amendments, MP Kuria also clarified earlier ambiguities around the definition of “national infrastructure.” The Bill now provides a clear outline of projects eligible for financing, including national highways, railway networks, airports, and seaports.In the energy sector, the Fund is expected to support electricity generation, transmission, and distribution.The NIF will be supported by diverse revenue streams, including proceeds from privatisation and the sale of shares in government-linked corporations.To avoid duplication of legal frameworks, lawmakers also removed clauses that replicated provisions under the Public Private Partnership (PPP) Act, ensuring the Fund focuses on strategic commercial investment while leaving project preparation to the PPP Directorate.“The journey to Singapore has been crystallized.We have now put the roadmap to the first world.”Ichungwah stated.The Bill now awaits assent by President William Ruto.