Cabinet Set to Deliberate on Sh5 Trillion National Infrastructure Fund
The government plans to construct the standard gauge railway up to the border with Uganda in order to improve regional integration, reduce the cost of transporting goods, and improve trade.
H.E. President William Rutto.Photo/Courtesy
By Ruth Sang
The agenda will see the cabinet meet on Monday, December 15, 2025, to discuss and ratify the structure of a proposed National Infrastructure Fund, which is one of the flagship projects initiated by the government and which will be instrumental in transforming the economy of Kenya. The project has since been hailed by President William Ruto as a game changer which will help transform a developing economy into a first-world economy.
As indicated by the President, the National Infrastructure Fund will be the main driver of raising an estimated Sh5 trillion which will be used to finance huge development projects in the country. He indicated that this money will be used to unlock long-term financing opportunities in order to make Kenya a hub in the regional economy through increased connectivity and productivity.
After approval, the Fund will invest in critical infrastructure projects which are important for national development. Among these critical sectors is the expansion of the road network, which will see the dualing of about 2,500 km of major roads. Additionally, the government will resurface a total of nearly 28,000 km of road network to improve access to markets and reduce travel time in order to promote economic development.
The proposed Fund will also facilitate major investments in essential transport and logistics infrastructure. The plans include the expansion of Jomo Kenyatta International Airport to boost capacity in handling passengers and cargo, as well as the overhaul and expansion of the ports of Mombasa and Lamu. Such investments are projected to consolidate Kenya’s strategic position as a major trade and logistics gateway to East and Central Africa.
Railways are another vital part of this infrastructure master plan. The government plans to construct the standard gauge railway up to the border with Uganda in order to improve regional integration, reduce the cost of transporting goods, and improve trade.
Apart from this, an important role in ensuring food security and energy production will be assumed by the National Infrastructure Fund. While addressing this momentous event, the President explained that this fund will be used for constructing 50 mega dams, 200 mini-dams, and 1,000 micro dams in the country. This will help irrigate up to 2.5 million acres of land.
Apart from providing irrigation, these projects will offer up to 10,000 megawatts of electricity, which will be very important in facilitating the processing and added value of goods via industrialization. With this increased electricity capacity, production will become cheaper.
President Ruto explained that the National Infrastructure Fund is an indication of the government’s emphasis on long-term planning and sustained development. He stated that since all funding for mega projects will be under one umbrella, this will enable the government to achieve better efficiency, accountability, and coordination in developing infrastructure.
The cabinet meeting shall be attended by senior government representatives from relevant ministries such as the Ministry of National Treasury and Economic Planning, Ministry of Information, Communications and the Digital Economy, Ministry of Lands, Public Works, Housing, and Urban Development, Ministry of Foreign Affairs, and Ministry of Interior and National Administration. The approval of the Fund will most likely represent a milestone in developing countries, including Kenya, since it will provide an impetus for fast growth and better service delivery, among other benefits.
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