Kindiki: Asset sales will fund development without new taxes

Kenya's new National Infrastructure Fund has received Sh345 billion from the sale of government stakes in Kenya Pipeline Company and Safaricom, a move Deputy President Kithure Kindiki says will help fund development projects without increasing public debt.

Kindiki said the fund is expected to provide a long-term financing solution for major infrastructure projects while reducing pressure on the government to borrow or impose additional taxes to meet development needs.

The Deputy President spoke on Friday at Harambee House Annex in Nairobi after receiving a status report on ongoing water projects from Water Cabinet Secretary Eric Mugaa and senior ministry officials.

Deputy President Kithure Kindiki during a meeting with water sector heads at Harambee Annex on July 3, 2026.PHOTO/DPCS

According to Kindiki, the National Infrastructure Fund has already secured Sh100 billion from the sale of the government's stake in Kenya Pipeline Company and a further Sh245 billion from a similar transaction involving Safaricom.

“We now have a way of mobilizing enough domestic resources without piling debt and raising taxes. We are innovatively raising money by pulling resources together to fund projects,” DP noted.

He said the fund represents a new approach to financing development by tapping into domestic resources and creating a sustainable source of capital for large-scale projects.

Kindiki noted that the legal framework required to operationalise the fund is already in place and that the government is finalising the remaining processes after securing the initial capital.

“The Infrastructure Fund has been a game changer because for every shilling we invest in the Fund we will leverage another ten shillings. We are at the tail end of its operationalization because the law is in place and now we have the seed money,” he added.

The Deputy President said the water sector will be among the key beneficiaries of the fund as the government seeks to increase water connectivity across the country from the current level of 76 per cent.

He said the resources will support the construction of at least 50 mega dams and 200 medium-sized dams, as well as other water projects that have remained incomplete for more than 30 years due to funding challenges.

“Water is at the centre of agricultural transformation and is also important in manufacturing because of industrial use. The coming into force of the Infrastructure Fund will help us in a big way in these sectors,” DP stated.

Kindiki said improved investment in water infrastructure will strengthen agricultural production and support industrial growth by increasing access to reliable water supplies.

The Deputy President also received a briefing on road and transport infrastructure projects during a separate meeting with senior officials from the Ministry of Roads and Infrastructure led by Cabinet Secretary Davies Chirchir.

He said the government has paid more than Sh270 billion to contractors over the last year as it accelerates the completion of 8,000 kilometres of road projects across the country.

Kindiki further revealed that the Sh155 billion modernisation and expansion of Jomo Kenyatta International Airport is now underway, with the project expected to improve facilities and capacity at Kenya's main international gateway.

He expressed confidence that the government's new financing model would speed up the delivery of critical infrastructure projects and help address long-standing development gaps.

“Our confidence levels as a country on responding to the needs of the country on infrastructure is higher than before. It is the first time we are taking part of the government’s stakes in some of these investments and using it to solve crucial public challenges standing between us and first world status,” DP said.