Kenya’s draft National Infrastructure Fund rules introduce a 20% cap on individual project investments and sector-level limits to diversify funding and minimise risk, aiming to optimise public and private capital for major development projects.
Kenya’s proposed National Infrastructure Fund would be restricted to putting no more than 20% of its assets into any single project, under draft investment rules now before parliament. According to the proposed policy, the fund is meant to back major works such as highways, railways, airports, seaports, power infrastructure, water storage and irrigation systems, as well as digital and agribusiness projects. The Kenya Times reported that the framework is designed to broaden financing options while keeping risk concentrated only within strict limits.
The draft policy, Sessional Paper No. 7 of 2026, also seeks to stop overexposure to any one sector by capping sector-level commitments at 40% of assets. It sets a minimum expected equity return of 7% and says projects should be able to raise at least 60% of their financing through non-recourse debt, meaning lenders would rely on the project’s own assets and cash flows rather than the fund’s wider balance sheet. The policy also rules out balance sheet borrowing by the fund.
The proposal would give the board a wide set of investment tools, including direct equity, quasi-equity, debt instruments, project finance structures, special purpose vehicles, infrastructure funds and co-investment platforms. That approach fits the broader aim set out in the National Infrastructure Fund Act, 2026, which establishes the fund to mobilise public and private capital for large projects while emphasising transparency, accountability and reduced dependence on public debt.
The policy is intended to help channel capital into transport, energy, water and other strategic sectors without allowing the fund to become too heavily exposed to one project or industry. Public comments are due by August 24 at 5 pm and should be submitted to the National Assembly’s Finance and National Planning Committee.
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