Ndindi Nyoro has opposed the creation of the National Infrastructure Fund, cautioning that it could expose the country to additional borrowing instead of strengthening sustainable development.
Nyoro voiced his concerns during the opening of Mwai Kibaki Senior School in Gaturi ward, where he noted that Kenya’s debt continues to rise, with the country borrowing approximately Sh1.5 trillion every year.
According to the lawmaker, the proposed fund may allow the government to access loans beyond the regular budgetary process, a move he warned could increase financial pressure on citizens.
Nyoro questioned the structure of the fund, saying the government’s proposal that every Sh1 invested could attract up to Sh12 in additional funding is effectively another way of encouraging more borrowing.
He warned that increasing debt without careful management could place a heavy burden on both current and future generations.
The MP also urged leaders to exercise caution when pursuing development projects, emphasising that while infrastructure development is important, it should not come at the cost of long-term economic stability.
Nyoro further raised concerns about the impact of limited funding on critical sectors such as education, saying the sector has already been strained due to inadequate financial support.
His remarks came shortly after President William Ruto signed the National Infrastructure Bill, 2026, into law, creating the Sh5 trillion National Infrastructure Fund.
The legislation, sponsored by Kimani Ichung’wah, aims to introduce an investment-driven approach to financing infrastructure by attracting private capital to major national projects.
Under the plan, the fund will operate as a corporate investment vehicle rather than a traditional government-managed fund, with the goal of mobilising around Sh5 trillion over the next decade.
The resources are expected to support large-scale infrastructure projects including roads, railways, ports, irrigation systems and energy developments.
President Ruto indicated that the first project to benefit from the fund will be the expansion of Jomo Kenyatta International Airport, with the initiative expected to include about Sh20 billion in equity contributions from the fund and local institutional investors.
The President added that the financing model mirrors similar infrastructure funds used in several countries, including Nigeria, Ghana, India, Canada, United Kingdom and South Africa to attract private investment into national development.
Projects expected to benefit from the fund include the Loosuk–Lessos power transmission line, the Galana–Kulalu irrigation project, the Rironi–Naivasha–Mau Summit highway and the planned extension of the Standard Gauge Railway to Malaba.
