Concerns are mounting over the proposed KSh5 trillion National Infrastructure Fund, with key oversight institutions warning that the Bill, in its current form, could create governance and accountability risks.
In submissions to the National Assembly Finance Committee during stakeholder consultations on the National Infrastructure Fund Bill 2026, the Office of the Controller of Budget (CoB), led by Margaret Nyakang’o, questioned the legal and structural foundation of the Fund.
The CoB said the proposed fund is structured as a corporate entity rather than a public fund, a move that could weaken safeguards and make it vulnerable to misuse.
Of particular concern is the apparent exclusion of the Controller of Budget from authorising withdrawals and overseeing expenditure, a constitutional mandate designed to protect public resources.
The Auditor General and other financial governance bodies have echoed similar reservations, especially around the Fund’s management and institutional independence.
Several stakeholders argue that the National Treasury should not directly manage the Fund, urging instead that it be placed under an independent entity to enhance credibility, transparency and public trust.
Ambiguities have also been raised in the Bill, including whether the Public Finance Management Act (PFMA) applies to the Fund, how oversight will be exercised, and who will authorise withdrawals.
Another critical issue raised is the treatment of proceeds flowing into the Fund.
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The Bill does not clearly exclude such monies from the Consolidated Fund, meaning revenues, including potential proceeds from the sale of public assets, may legally need to be deposited into the Consolidated Fund first before any transfer.
The Institute of Public Finance illustrated this concern with a practical question, among them, if a national asset such as the Kenyatta International Convention Centre (KICC) were sold, how would the government ensure the proceeds go directly to the Infrastructure Fund and not remain in the Consolidated Fund?
The Institute of Certified Public Accountants of Kenya (ICPAK) also weighed in, calling for the Fund to be managed independently to safeguard oversight and strengthen accountability.
ICPAK Council member Hesbon Omollo stressed that credibility in such a large financial vehicle can only be achieved through transparent and independent fund management structures.
To address these concerns, the Office of the Controller of Budget, the Institute of Public Finance and ICPAK have proposed amendments to the Bill.
These include explicitly granting the CoB authority to approve withdrawals, fully integrating the Fund into the national budget cycle, requiring quarterly and annual performance reporting, and clearly defining the applicable governance and regulatory framework.
The National Infrastructure Fund Bill 2026 has already undergone its First Reading in Parliament and is set to return to the House for its Second Reading next week, ahead of public participation.
As debate looms, the central question remains whether the proposed structure can balance the ambition of financing transformative infrastructure with the constitutional safeguards that protect public funds.
