Politicians banned from appointment in Ruto's proposed Sh5 trillion fund

A new bill seeking to establish the National Infrastructure Fund (NIF) proposes some of the toughest eligibility rules ever applied to a public investment vehicle in Kenya, in what appears to be a deliberate effort to shield the fund from political influence.

The National Infrastructure Fund Bill, 2026, aims to create a sovereign investment vehicle to help close Kenya’s estimated Sh400 billion annual infrastructure financing gap. 

At its core is a governance structure designed to draw a clear line between political office and control of the fund.

The proposed law leaves little room for interpretation. Sitting Members of Parliament, Senators and Members of County Assembly would be barred from serving either as independent directors or as the fund’s Chief Executive Officer.

The restriction does not stop at current office holders. Anyone who has been affiliated with a political party as an official or candidate within the previous five years would also be ineligible. 

The five-year cooling-off period effectively shuts out recent political actors from board appointments.

It marks a sharp departure from the norm in many state corporations, where board appointments have often included former politicians or individuals with recent political ties.

Beyond political disqualification, the bill sets high professional thresholds for board members. The proposed structure includes an independent chairperson and four independent directors, all to be recruited through a competitive process.

Candidates must have at least 15 years’ experience in senior management or professional leadership. 

Two positions are reserved for individuals with demonstrated leadership in development banking, signalling an intention to anchor the Fund in technical expertise rather than political loyalty.

The exclusions extend further. Individuals who have worked for the national government or any government-owned enterprise within the past five years would be barred from appointment. 

Immediate family members of current state enterprise executives, including parents, children and siblings, would also be disqualified.

Taken together, the provisions amount to a deliberate attempt to minimise insider influence and reduce conflicts of interest.

Infrastructure funds around the world often falter when investment decisions are shaped by political considerations.

Kenya’s own experience with large-scale projects has frequently drawn criticism over cost overruns, procurement concerns and projects driven by political visibility rather than commercial viability. 

By insulating the board from electoral cycles and party structures, the proposed law seeks to ensure that investment decisions are guided by financial returns and long-term sustainability.

If implemented as drafted, the fund would operate on a capital-based financing model rather than rely solely on annual Treasury allocations, marking a structural shift in how major infrastructure projects are funded.

The governance safeguards are particularly significant given the scale of capital the fund intends to mobilise. 

The bill envisions raising up to Sh5 trillion from domestic pension schemes and collective investment funds.

That ambition brings heightened public sensitivity, especially around the protection of retirement savings. 

By imposing strict independence and qualification requirements on board members, the drafters appear keen to reassure pension contributors that their money would be overseen by professional fiduciaries rather than politically connected appointees.

As the Bill heads to the National Assembly, attention is likely to focus not only on the fund’s financing model but also on whether these governance safeguards remain intact through the legislative process.