High Court Declines to Suspend Sh5 Trillion National Infrastructure Fund, Orders Treasury to Open Books

The High Court has declined to suspend the implementation of the National Infrastructure Fund (NIF), allowing the recently enacted law to remain in force as constitutional petitions challenging its legality proceed through the courts.

Instead of halting the fund, the court directed the National Treasury to file certified accounts and transaction reports. The order is intended to improve transparency while the constitutional petitions are heard and determined.

The ruling means the government's flagship infrastructure financing framework remains operational. However, the Treasury will now be required to provide financial records detailing transactions undertaken through the fund as part of the ongoing court proceedings.

The constitutional petitions challenge the legality of the National Infrastructure Fund, with petitioners questioning its governance structure and compliance with public finance laws. They argue the fund could weaken existing oversight mechanisms for managing public resources.

By requiring the Treasury to disclose certified accounts and transaction reports, the court placed transparency at the centre of the dispute. The financial records are expected to help determine whether the fund is being administered in accordance with the Constitution.

The National Infrastructure Fund was created to mobilise up to Sh5 trillion for investment in major infrastructure projects. It is expected to finance developments across transport, energy, water, irrigation, housing and digital infrastructure.

The government has maintained that the fund will attract long-term private capital into infrastructure while reducing dependence on conventional public borrowing. Officials have described it as a vehicle for accelerating strategic national projects.

The case follows months of legal challenges over the fund's establishment. Earlier court orders temporarily restrained implementation before Parliament passed the National Infrastructure Fund Bill and President William Ruto signed it into law.

Although the High Court declined to suspend the legislation, the constitutional petitions remain active. The judges will later determine whether the establishment and operation of the fund comply with Kenya's Constitution and public finance framework.

The Treasury must now comply with the disclosure orders as the case moves forward. The outcome is expected to shape how one of Kenya's most ambitious infrastructure financing mechanisms is governed and monitored in the years ahead.