Ndii details plan to leverage privatization proceeds for $30 billion infrastructure fund

David Ndii, the chairperson of the Presidential Council of Economic Advisers, has outlined a financing strategy that aims to move Kenya’s large-scale infrastructure development away from tax-funded budgets. Speaking on the mechanics of the newly established National Infrastructure Fund, Ndii explained that the government intends to use capital from the privatization of state assets to anchor a fund capable of attracting massive private investment.

The strategy relies on a leverage model where initial public capital acts as a magnet for institutional and private investors. Ndii noted that for every $1 placed into this fund from privatization proceeds, the government expects to leverage between 10 and 15 times that amount in external capital. Under this framework, a $3 billion capitalization could theoretically finance roughly $30 billion worth of infrastructure projects in a single cycle.

This shift comes as the government faces a tightening fiscal environment and high public debt levels. By moving commercially viable projects into a dedicated fund, the administration hopes to reduce the strain on the national budget. The approach is intended to ensure that infrastructure development continues without the need for additional sovereign borrowing or the introduction of new levies on taxpayers.

The National Infrastructure Fund was recently signed into law following the passage of the National Infrastructure Fund Act, 2026. The legislation creates a corporate entity governed by a board of directors, tasked with managing a pool of funds that includes government allocations, privatization proceeds, and investments from pension funds. These resources are earmarked for "catalytic" projects, including the expansion of highway and railway networks, electricity transmission, and water reservoirs.

One of the first major tests for this financing model will be the planned expansion of Jomo Kenyatta International Airport. The project is expected to utilize equity participation from the fund alongside domestic institutional investors. Other priority areas identified by the administration include the extension of the Standard Gauge Railway to Malaba and the construction of over 1,000 small dams to support food security.

Ndii emphasized that the fund represents a move toward market-based financing. By ring-fencing proceeds from the sale of public assets, the government aims to reinvest that value into new physical assets. This method is designed to provide a sustainable path for infrastructure growth while the country focuses on fiscal consolidation and reducing its budget deficit.

The success of the fund will depend on its ability to present bankable projects to the private sector. While the government provides the "seed" capital, the bulk of the financing must come from private entities, including diaspora resources and wealth funds. This structure is intended to professionalize the execution of complex projects and ensure they generate returns commensurate with the investment.