Parliament passes Infrastructure Fund Bill with changes to governance structure

The National Assembly has passed the National Infrastructure Fund Bill, bringing the proposed Sh5 trillion fund a step closer to implementation. The Bill now awaits assent from President William Ruto before it can become law.

The legislation, which was approved with significant amendments, is expected to play a central role in financing major development projects as the government pursues its ambitious infrastructure agenda.

Lawmakers described the fund as a key tool in supporting the administration’s vision of transforming Kenya into a developed economy.

The Bill sailed through Parliament after lawmakers introduced amendments aimed at strengthening oversight and addressing concerns raised by both the public and legislators.

One of the most notable changes was the removal of the Treasury Cabinet Secretary from the board that will run the fund. Earlier proposals had given the Treasury CS significant influence over the board’s operations.

The amendment now establishes a more independent governance structure. The board will consist of eight members: four independent directors who will be competitively recruited by the governing council, three public officers appointed based on their expertise or position, and a chief executive officer who will serve as an ex officio member.

The changes were introduced after critics warned that the original structure concentrated too much authority in the office of the Treasury Cabinet Secretary.

Under the revised Bill, a governing council will provide overall direction and guidance to the board.

The council will include the Cabinet Secretary for the National Treasury, the Governor of the Central Bank of Kenya, the Attorney General and six other members who are not public officers.

Among its key responsibilities will be overseeing the development of the fund’s investment policy and recruiting members of the board of directors.

The council will also provide strategic direction and ensure the fund’s investments align with national development priorities.

Members of Parliament also strengthened their role in overseeing the fund through further amendments to the Bill.

The legislation now requires the board’s investment policy to be tabled before the National Assembly by the Treasury Cabinet Secretary for approval. Parliament will have 90 days to review the policy and either approve or reject it.