The High Court in Nairobi has declined to suspend the implementation of the Infrastructure Fund Act, despite two separate constitutional petitions challenging its legality.
Judges Lawrence Mugambi and Bahati Mwamuye refused to issue conservatory orders to halt the law pending the hearing of the petitions, although both certified the cases as urgent.
Key Court Directions
Justice Mwamuye ordered petitioners to serve all respondents and interested parties by March 13, 2026.
Respondents have until March 20 to file their responses, while rejoinders and written submissions are due by March 27.
The court set April 21 as the mention date to confirm compliance and proceed with the determination of the act’s constitutionality.
Background
The petitions were filed a day after President William Ruto assented to the National Infrastructure Fund (NIF) Bill, making it law. The fund is designed to mobilize Ksh 5 trillion over the coming years for major infrastructure projects.
Fund Structure and Oversight
The fund is a body corporate capable of owning property, entering contracts, and investing in projects.
It is prohibited from borrowing or taking credit against its balance sheet.
Primary funding sources include partial privatisation of state-owned enterprises, asset monetisation, and national resource revenue.
The partial sale of Kenya Pipeline, which raised over Ksh 106 billion, will be a key source of capital.
Governance
The fund will be overseen by a seven-member Board of Directors, chaired by an independent director.
The Treasury Cabinet Secretary will sit on the board.
The President announced that a team to select the fund’s governing council will be appointed on March 11, 2026.
The board will include four independent directors and two development banking experts, with restrictions barring recent government employees or political affiliates.
Board members serve three-year terms, renewable once, and can be removed for bankruptcy, criminal conviction, absenteeism, or entry into political office.
The court’s decision allows the National Infrastructure Fund to commence operations while the legal challenges proceed, ensuring that ongoing infrastructure mobilization efforts are not disrupted.
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