President William Ruto on Wednesday signed into law the Sovereign Wealth Fund Act, paving the way for the establishment of a national investment fund that will finance strategic development projects to shield the economy from external shocks.
According to the president the new law marks a significant milestone in Kenya’s efforts to create a long-term savings and investment drive that will draw resources from surplus revenues, proceeds from natural resources and other approved sources to support sustainable economic growth.
Speaking today during the assent ceremony at State House, Nairobi, President Ruto said the fund would fundamentally change the country’s approach to managing public wealth by ensuring that today’s resources benefit both current and future generations.
He said the Sovereign Wealth Fund would provide a reliable financial cushion during periods of economic uncertainty while creating a pool of resources to finance critical infrastructure and other priority national projects without placing additional pressure on taxpayers.
“The establishment of this fund represents a new chapter in the management of our national wealth. It will ensure that the benefits of our natural resources and other national assets are shared across generations while strengthening our economic resilience,” the President said.
Deputy President Prof. Kithure Kindiki who was also present welcomed the enactment of the law, describing it as a transformative step that would strengthen Kenya’s financial stability and create lasting value for citizens.
Prof. Kindiki said the fund would enhance the country’s ability to mobilise domestic resources for development while safeguarding the economy against future financial shocks.
He added that the government remained committed to ensuring prudent management of the fund through strong governance structures, accountability and transparency.
The law also received praise from National Assembly Speaker Moses Wetang’ula, Treasury Cabinet Secretary John Mbadi and ODM leader Dr. Oburu Odinga, who said Kenya had finally realised a vision that previous administrations had pursued unsuccessfully.
The leaders noted that the enactment of the legislation demonstrated broad national consensus on the importance of creating a sovereign wealth fund capable of supporting long-term economic transformation.
Mr Mbadi said the fund would complement ongoing fiscal reforms by promoting responsible management of national resources and reducing dependence on external borrowing to finance key development programmes.
The assent ceremony also brought together leading figures in Kenya’s financial sector, who described the new law as a landmark reform that could strengthen investor confidence and accelerate economic growth if implemented effectively.
Among those present were Kenya Bankers Association chairman and KCB Group Chief Executive Paul Russo, Equity Group Chief Executive Dr. James Mwangi and CPF Financial Services Chief Executive Dr. Hosea Kili.
The industry leaders welcomed the establishment of the fund but called for robust governance systems, professional management and strict oversight to guarantee transparency and protect public resources.
They also proposed measures aimed at enhancing the operational framework of the fund to ensure it delivers maximum returns while maintaining public confidence.
Responding to their proposals, Prof. Kindiki assured stakeholders that the government would carefully consider the recommendations during the implementation phase of the Act.
He said collaboration between government, financial institutions and other stakeholders would be critical in ensuring the Sovereign Wealth Fund achieves its intended objectives.
