Kenyan diaspora affairs expert Danson Mukile has defended the proposed National Infrastructure Fund, arguing it could transform Kenya’s development if implemented with competent and independent leadership.
Speaking on Friday, he compared the plan to successful models in Singapore and India, emphasizing the need to separate politics from investment decisions and attract diaspora and private sector funding.
Mukile said the country should have established such a fund decades ago and argued that Kenya now has an opportunity to restructure how major infrastructure projects are financed.
“I would say we needed a National Infrastructure Fund in 1963. It has taken us 60 years before we got here,” he said, noting that many countries have used similar financial structures to accelerate development.
Mukile pointed to examples such as the United States and Singapore, which he said built strong infrastructure through structured investment vehicles. He said the Kenyan proposal appears partly inspired by models used in India and Singapore.
“If you look at the infrastructure fund, this is mostly copied from India and also inspired by Singapore itself,” he said.
According to Mukile, Singapore’s transformation began in the 1970s when its leadership sought to commercialise state-owned enterprises rather than leave them operating purely as government institutions.
“In 1974 the Prime Minister of Singapore came up with a very wonderful idea. He said we need to save the country to develop and create jobs,” he said.
He explained that the Singapore government created a shareholding investment company that commercialised key state enterprises, including Singapore Airlines. The aim, he said, was to generate national wealth and employment opportunities.
“They created a vehicle that commercialised these instruments or parastatals in the country,” he said.
The National Infrastructure Fund (NIF) is a newly established financing mechanism designed to support large-scale national development projects.
The fund was created through the National Infrastructure Fund Bill, 2026, which was introduced in the National Assembly of Kenya on January 23, 2026 and later debated and amended by Members of Parliament.
The legislation was passed by Parliament on March 5, 2026, paving the way for the establishment of the fund as a new framework for financing strategic infrastructure across the country.
President William Ruto assented to the bill on March 9, 2026, during a signing ceremony at State House Nairobi, officially turning it into law.
The fund was introduced to transform how Kenya finances major projects by shifting from heavy reliance on government borrowing to an investment-led model that attracts private capital.
The government expects the fund to mobilise about Sh5 trillion over the next decade to finance key sectors including highways, railways, ports, airports, energy systems and irrigation infrastructure.
The government officials said the fund will operate as a corporate investment vehicle, allowing the government, pension funds, institutional investors and international financiers to jointly invest in commercially viable infrastructure projects.
The initiative is part of Kenya’s broader strategy to accelerate economic growth, reduce pressure on public debt and create a sustainable system for financing critical national infrastructure
Mukile argued that Kenya could follow a similar path, but stressed that success would depend heavily on leadership and governance.
“The right people are the most important thing,” he said, adding that the fund must be insulated from political influence.
“What the Prime Minister Lee Kuan Yew did was to make sure that this fund or vehicle was void of politics,” he said, warning that political interference has historically undermined many public institutions in Kenya.
“Politics has killed our country. Everything we do, the politician takes over,” he added.
Mukile said Kenya currently has hundreds of parastatals whose boards often include political figures, a situation he believes limits innovation and efficiency.
“Do you think these politicians will even come up with a wonderful idea to change any parastatal? It is just making ways of how they can make money and go back to look for votes,” he said.
He described the proposed infrastructure fund as different from traditional government funds because it would combine state capital with private investment.
Under the model he described, the government would act as an anchor investor while private investors, including ordinary citizens and diaspora investors, would also contribute.
“It is not the regular funds we are used to. The management will not be the government per se. It is controlled by 100 percent government but private investors can put in money,” he said.
Mukile said such a structure could finance large projects such as airports by creating dedicated investment vehicles.
“We can create a vehicle for JKIA. The government puts in some money and other investors put in their money and they earn dividends,” he said.
However, the fund has also raised concerns about transparency and accountability, particularly regarding whether such funds should pass through the consolidated fund.
Mukile argued that traditional government processes can slow down development projects.
“The norm they are used to is where you get the money, put it in a fund, the State Department comes with a project, it goes to parliament, treasury releases funds. There are thousands of steps to get that project done,” he said.
He contrasted that with the proposed model, which he said could allow faster implementation of infrastructure priorities.
the diaspora affairs expert also pointed to past borrowing practices, suggesting that development loans were sometimes mismanaged.
“I will give a simple example so people can understand. By the time we get home there is no sugar left. That is how our loans were going,” he said, referring to funds that failed to reach their intended projects.
Despite concerns, he expressed optimism that the infrastructure fund could change Kenya’s development path if managed properly.
“If we get the right people, I will tell you the next 20 years Kenya will be in a different trajectory,” he said.
Mukile added that diaspora investment could play a crucial role in financing major projects, arguing that Kenyans living abroad hold significant capital that could be channelled into national development.
He also compared Kenya’s infrastructure with that of neighbouring countries, citing Ethiopia’s airport as an example of successful investment.
“If you go to Bole International Airport you may think you are not in Africa. Once you land in JKIA you see the difference,” he said.
Mukile concluded by expressing hope that the government would maintain the independence of the fund and avoid political interference in its leadership.