The Treasury has taken a major step towards unlocking billions of shillings for infrastructure development after appointing a six-member board to oversee the National Infrastructure Fund (NIF), a new vehicle designed to finance key projects outside traditional government borrowing.
Treasury Cabinet Secretary John Mbadi made the appointments through a special issue of the Kenya Gazette published on Wednesday, July 8, with the six members assuming office immediately.
The newly appointed board members are James Mworia Mwirigi, Fahima Ali Ahmed Zein, Christopher Kibui Maranga, Latoya Ouna, Lawrence Kibet and Mohammed Abdirahman Hassan.
The appointments mark the beginning of the fund’s transition from a legal framework into an operational institution expected to play a major role in financing large-scale infrastructure projects.
Mwirigi brings experience from the private sector, having served as a lawyer, accountant and business executive. He is currently the Managing Director and Chief Executive Officer of Centum Investment Company.
Kibet, another member of the board, is the Director General in charge of Public Investments and Portfolio Management at the National Treasury.
The government established the NIF as part of efforts to create a sustainable funding source for infrastructure projects while reducing pressure on public borrowing.
The fund received its first major financial boost after the government deposited Sh103.45 billion from the sale of a 65 per cent stake in Kenya Pipeline Company (KPC) as seed capital.
The Treasury is also looking at proceeds from the planned partial sale of the government’s stake in a major telecommunications firm to increase the fund’s resources.
The proposed transaction is expected to provide about Sh244 billion, including Sh204 billion from the sale of shares and Sh40.2 billion paid upfront to replace future dividend payments.
With the fund now taking shape, several major infrastructure projects have been lined up as potential beneficiaries, among them the first phase of the Sh154.2 billion modernisation of Jomo Kenyatta International Airport (JKIA).
The airport project will involve upgrading existing terminals and airfield facilities, as well as building a new passenger terminal to raise annual passenger handling capacity from 7.5 million to approximately 22 million.
Construction preparations have already started at the airport as the government moves to expand passenger and cargo handling facilities.
The Nairobi-Namanga Highway expansion is also among the projects expected to receive support from the fund. The plan involves upgrading the approximately 160-kilometre road into a dual carriageway with toll stations.
The formation of the board places the NIF closer to becoming a key financing platform for government infrastructure plans, with the Treasury seeking to use proceeds from strategic investments to support development projects.