• Kenya to launch sovereign wealth, infrastructure funds for growth

• Funds to reduce debt reliance, finance key national projects

• High public debt, protests challenge fiscal reform efforts

Kenya will set up a sovereign wealth fund and an infrastructure fund to drive economic growth and cut dependence on commercial borrowing, President William Ruto said on Sunday.

We are going to set up an infrastructure fund to help us build dams, roads and electricity - Ruto pic.twitter.com/krTFVZy2zk

— Kenyans.co.ke (@Kenyans) October 5, 2025

The planned infrastructure fund will finance major national projects such as dams, roads, and energy facilities, Ruto said.

“We must secure enough resources to finish the roads already under construction. If it costs us 600 billion shillings, we have to raise that money,” he told reporters.

The sovereign wealth fund will manage proceeds from state assets and privatizations, starting with the planned sale of shares in the Kenya Pipeline Company (KPC), which transports petroleum products across Kenya and to neighbouring states.

Ruto’s remarks come as public debt—about 63% of GDP in 2024—remains a flashpoint, sparking months of demonstrations. Earlier protests against new taxes forced the government to amend the 2024/25 Finance Bill and order an audit of public borrowing in September. The later withdrawal of the tax bill, however, set back efforts to raise revenue.

An IMF mission is currently in Nairobi at the government’s request to discuss a potential support programme aimed at preserving macroeconomic stability and debt sustainability.

While the World Bank says Kenya’s economy remains resilient, failure to meet fiscal-consolidation targets could deepen debt risks and slow private-sector-led growth.

Lydie Mobio