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The National Infrastructure Fund (NIF) has started investing part of its Ksh340 billion seed capital in the bond market as it seeks to generate billions of shillings in annual returns.
NIF Chief Executive Officer James Mworia said the investments began in July, with the fund expecting to generate approximately Ksh42 billion every year while preserving the initial capital.
The fund was established to provide an alternative way of financing major infrastructure projects without relying heavily on fresh government borrowing.
Some of the projects being considered under the programme include the expansion of Jomo Kenyatta International Airport (JKIA), as well as major investments in roads, energy, water and digital infrastructure.
According to Mworia, the fund's entry into the domestic bond market is also expected to inject more liquidity into Kenya's financial system. This could give commercial banks more room to redirect funds towards lending to businesses and households.
The NIF was announced by President William Ruto in October 2025 and became operational this year after receiving its initial capital from the sale of Kenya Pipeline Company shares.
Mworia said the fund intends to deploy the entire Ksh340 billion by the end of the current financial year in June 2027. The NIF also hopes to attract additional capital from both local and international investors.
Among the other projects being considered is the planned Dangote East Africa Refinery in Lamu, which has already attracted interest from potential co-investors.
The new investment model is expected to give Kenya another source of funding for major infrastructure projects while reducing pressure on government finances.