The government is moving to tighten its control over the massive Sh5 trillion Infrastructure Fund, with new legislative proposals designed to centralise decision-making and fast-track mega-projects.

In a legislative maneuver that will reshape how Kenya funds its roads, railways, and bridges, the State is poised to take a "firm grip" on the proposed Sh5 trillion Infrastructure Fund. The move, championed by National Assembly Majority Leader Kimani Ichung'wah, signals a departure from fragmented funding models towards a centralised, state-driven approach. The goal is clear: to unlock the capital needed to close the country's widening infrastructure gap without drowning in more sovereign debt.

The proposed legislation aims to streamline the governance of the fund, placing significant power in the hands of the executive to direct investments. Proponents argue that this consolidation is necessary to attract long-term institutional investors—pension funds, insurance companies, and sovereign wealth funds—who demand stability and state guarantees. By "de-risking" these projects through a centralised fund, the government hopes to tap into the trillions of shillings sitting idle in the private sector.

The Governance Tug-of-War

However, the proposal has sparked a quiet tug-of-war. Critics worry that too much state control could lead to the politicisation of projects, where roads are built to reward political loyalty rather than economic logic. There are also concerns about transparency. A fund of this magnitude requires fortress-like safeguards against corruption. "If the State grips it too tight, they might squeeze the life out of it," warned an economist. "Investors need to see independence in decision-making, not just government directives."

• The Pot: Sh5 Trillion (Target Fund Size).
• The Mover: Majority Leader Kimani Ichung'wah.
• The Goal: Centralised funding for mega-projects (Roads, Rail, Energy).

The Toll Road Future

This legislative push comes against the backdrop of the Treasury flagging risks regarding toll highways. The government is increasingly looking at Public-Private Partnerships (PPPs) where users pay for the infrastructure. The Infrastructure Fund is seen as the vehicle that will anchor these deals, providing the "viability gap funding" needed to make expensive projects bankable. For the Kenyan taxpayer, the message is mixed: better roads are coming, but the era of free infrastructure is ending. The State's grip is tightening, and with it, the financial architecture of the nation is being rewritten.