The government has clarified that certain projects, including stadiums, public parks, and other social infrastructure, will not be financed through the National Infrastructure Fund (NIF), amid public curiosity about the fund’s scope and operations.
According to the NIF guidelines, these projects are classified as pure public goods that cannot generate predictable revenue to repay investors. Only projects with a reliable income stream capable of supporting investment repayments will qualify for funding.
“While stadiums and parks remain important for public use, they cannot be structured under the NIF model because the fund’s agenda is to generate profit to finance other projects,” Treasury Cabinet Secretary John Mbadi explained.
Projects Eligible for NIF Funding
The government noted that the fund will target bankable infrastructure projects, such as:
Airports
Toll highways
Energy projects
Logistics infrastructure
For instance, airports can generate returns from landing fees, cargo handling charges, and commercial operations, making them suitable for investment-based financing.
President William Ruto recently assented to the NIF bill, unlocking Ksh 5 trillion to accelerate infrastructure development.
The expansion of Jomo Kenyatta International Airport (JKIA) has been identified as the first project to be funded under this model.
Funding Model and Investor Participation
The NIF is designed to mobilise private capital and alternative funding sources, including:
Domestic pension funds
Collective investment schemes
Sovereign wealth funds
Climate finance facilities
This approach reduces dependence on debt financing. Investors will also participate in oversight and decision-making, ensuring professional financial discipline and accountability in project selection.
The fund’s financing will come from:
Investment capital
The national budget
Divestiture and sale of state-owned enterprises
CS John Mbadi confirmed that the fund will not deduct levies from civil servants’ salaries, unlike other public schemes such as the housing fund.
Seed capital will instead come from the sale of government shares in state-owned enterprises.
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