Lead image for Mbadi to MPs: These are the projects fit for Sh340bn infrastructure fund.
The Treasury wants Parliament to approve a policy that will lock out projects that cannot demonstrate commercial viability from being funded by the National Infrastructure Fund (NIF).
Treasury Cabinet Secretary John Mbadi told the National Assembly’s Finance and National Planning Committee that the National Infrastructure Fund Investment Policy 2026 sets out strict investment procedures for financing commercially viable national projects.
He said the policy seeks to provide mechanisms for using the Sh340 billion National Infrastructure Fund to finance projects in key areas where capital will be preserved, investments must generate income, and projects must be capable of attracting private capital.
Mr Mbadi said the policy scope covers nationally significant assets, where additional priorities must remain consistent with the NIF Act.
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Under the policy, the NIF will finance bankable projects in the transport sector, including highways, railways, airports, seaports and logistics infrastructure; energy, covering generation, transmission, distribution and nationally significant energy systems; and ICT, where telecommunications, fibre, cloud, data centres and digital infrastructure will be funded.
The NIF will further finance projects in the water and irrigation sector, including water supply, storage, dams, irrigation, desalination and bulk water, while in the agriculture and livestock sector, funding will be directed to production, storage, processing, logistics and value-add infrastructure projects.
Mr Mbadi said no priority sector will account for more than 40 per cent of the NIF, while investment in a single project will be capped at 20 per cent of the total fund value.