Kenya Rules Out New Taxes for National Infrastructure Fund, Says Ndii

Kenya, 3 November 2025 - The Kenyan government will not introduce new taxes to finance the National Infrastructure Fund (NIF), Presidential Council of Economic Advisers Chairperson David Ndii has clarified.

Speaking during a recent briefing, Ndii said the fund will instead be capitalized using proceeds from the privatisation of state-owned enterprises.

This approach, he explained, is designed to relieve fiscal pressure on the national budget while allowing the country’s infrastructure agenda to move forward under ongoing austerity and fiscal consolidation efforts.

“The National Infrastructure Fund was part of our campaign manifesto,” Ndii stated.

“It is clear that its capitalization will come from privatisation proceeds, not from taxes or new levies.”

He added that the NIF provides a mechanism for the government to take certain infrastructure projects “off-budget” by using private capital raised from the sale of public assets. This means that instead of relying solely on taxpayer money, Kenya can channel funds from asset sales into new, revenue-generating projects.

“It makes sense that if you sell an asset, that money should go toward building another asset,” he said.

According to Ndii, this model will help reduce the fiscal burden on the national budget by ensuring that commercially viable infrastructure projects are financed outside the traditional public spending framework.

Progress toward establishing the fund had previously slowed due to court cases that temporarily stalled Kenya’s privatisation programme.

However, Ndii noted that the legal hurdles have now been cleared, paving the way for the fund’s rollout.

He also dismissed claims that some government projects were being executed outside approved budget processes, emphasizing that Kenya’s public finance system remains subject to strict oversight and transparency requirements.

The NIF is a central pillar of the Kenya Kwanza administration’s strategy to attract private investment into major infrastructure projects such as transport, energy, and water.

The aim is to support development while keeping public debt and tax levels in check.

Last month, President William Ruto reaffirmed the government’s commitment to establishing both a Sovereign Wealth Fund and an Infrastructure Fund.

The Infrastructure Fund, he said, will prioritise investments in reliable industrial energy, dam construction to enhance irrigation and food security, and expanded road networks to improve national and regional connectivity.