AfriPulse
The government has kicked off the process for the full rollout of the Ksh200 billion Kenya Sovereign Wealth Fund (KSWF), an initiative it says will safeguard the country’s national resource revenues.
On Monday, the National Treasury revealed it had developed the draft Kenya Sovereign Wealth Fund Bill 2025, which seeks to provide a legal basis for the management, investment and safeguarding of income derived from natural resources.
According to the Treasury, the proposed law’s key purpose is to promote financial management, transparency and accountability in handling proceeds from the country’s natural resources for long-term development.
“The National Treasury, in consultation with other stakeholders, has developed a draft Kenya Sovereign Wealth Fund Bill, 2025. The Bill provides a legal framework for the management of natural resource revenues in the country,” a statement from the Treasury read.
Treasury John Mbadi CS, during a briefing with financial journalists on the status of Kenya’s public debt on October 7, 2025.
Photo
Treasury
In the notice, the Treasury confirmed the call for submissions was in line with Articles 201(a) and 232(1)(d) of the Constitution, which emphasise openness and public participation in matters involving public finances.
About the Bill
The Draft Kenya Sovereign Wealth Fund Bill, 2025 proposes the creation of a special government fund known as the Kenya Sovereign Wealth Fund (KSWF) meant to manage and invest money earned from Kenya’s natural resources such as oil, gas and minerals.
As per the bill, the fund will be owned by the National Treasury, which will hold it in trust for all Kenyans.
Among the main purposes of the fund is that it will act as a financial cushion to protect the country when resource revenues fall or when the economy faces unexpected shocks.
The fund will also finance major infrastructure projects which promote national development and job creation. Thirdly, the fund is intended to save part of Kenya’s resource income for the future, since there is an awareness that minerals and petroleum are not infinite resources.
Another key provision is that the fund will be divided into three parts: the Stabilisation Component, the Strategic Infrastructure Investment Component, and the Future Generation (Urithi) Component.
“The object and purpose of the Stabilisation Component shall be—(a) to provide the national government with a buffer from fluctuations in resource revenues and (b) for the management of extraordinary shocks which may affect macroeconomic stability not covered under subparagraph (a),” reads part of the draft bill.
All the financial resources meant for the fund will first be deposited into a special Holding Account at the Central Bank of Kenya, and at the start of each financial year, the Treasury Cabinet Secretary will decide how much goes into each part.
The CS will ensure that at least 10 per cent is saved for future generations.
As far as the source of the funds is concerned, the money will mainly stem from natural resource revenues, including the government’s share of profits from petroleum operations, royalties from mining and oil, and income from government participation in energy and mineral projects.
The bill also has provisions for the usage of unexpected revenues known as windfalls. In this case, these funds will first be used to pay government debt, then stabilise the economy before finally being channeled towards supporting infrastructure development.
Further, the bill lays down strict investment rules to ensure efficient usage of the fund’s money. The board managing the fund can only invest in approved and safe financial instruments listed in the Second Schedule of the Bill. The fund is also forbidden from lending money, providing credit or being used as collateral for government borrowing.
The draft Bill is available on the National Treasury’s official website and members of the public can submit their comments via the treasury’s official email or deliver hard copies addressed to the National Treasury no later than Friday, November 7.
President William Ruto hands over Khs.511 million to Treasury CS John Mbadi. PHOTO/ Courtesy.
Source: Kenyans.co.ke | Read the Full Story…
