The National Treasury has invited Kenyans to give their views on the draft Kenya Sovereign Wealth Fund (KSWF) Bill, 2025, a landmark proposal aimed at creating a legal framework to manage and invest the country’s revenues from natural resources.
In a public notice dated October 24, 2025, Treasury Cabinet Secretary John Mbadi said the draft Bill was developed in consultation with key stakeholders to ensure transparency, accountability, and responsible management of Kenya’s natural wealth. The move aligns with Articles 201(a) and 232(1)(d) of the Constitution, which emphasize openness and public participation in financial management.
“In ensuring openness and accountability in public financial matters and in compliance with Article 201(a) and 232(1)(d) of the Constitution, the National Treasury hereby invites members of the public, the National Government, the County Governments, Non-Governmental Organizations, civil societies, professional bodies, private sector players, religious groups, and other stakeholders to make submissions on the draft Kenya Sovereign Wealth Fund Bill, 2025,” the notice read in part.
Kenyans have until Friday, November 7, 2025, to submit their comments via email or through hard copies addressed to the National Treasury, Harambee Avenue, Nairobi.
Purpose and Structure of the Sovereign Wealth Fund
The proposed law seeks to establish the Kenya Sovereign Wealth Fund (KSWF), a special investment vehicle owned and managed by the government through the Treasury on behalf of all Kenyans. The fund will start with an estimated Ksh200 billion, sourced mainly from natural resource revenues, government profits from petroleum operations, royalties from mining and oil, and proceeds from the divestment of state interests in energy and mineral enterprises.
The fund will serve three primary objectives:
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Economic Stabilization – cushioning the country during times of revenue shortfalls or global economic shocks.
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Strategic Infrastructure Investment – financing transformative national development projects.
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Future Generation Savings (Urithi Fund) – preserving a portion of Kenya’s resource income for future generations.
Each purpose will form a separate component under the fund: the Stabilisation Component, the Strategic Infrastructure Investment Component, and the Future Generation (Urithi) Component.
Management and Safeguards
According to the draft Bill, all money will first be deposited into a Holding Account at the Central Bank of Kenya (CBK). At the start of each financial year, the Cabinet Secretary for Treasury will determine allocations to the three components, ensuring that at least 10 percent is preserved for the Future Generation Fund.
The Bill also sets strict limits on how the fund can operate. It cannot lend money, extend credit, or serve as collateral for government borrowing. Investments will be made only in instruments approved under the Bill’s Second Schedule to minimize risk and ensure fiscal discipline.
Key Revisions from the 2019 Draft
The 2025 draft Bill introduces several significant updates to strengthen governance and flexibility.
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It adds proceeds from the sale or divestment of government interests in petroleum, energy, and mining projects as part of the fund’s revenue sources, potentially including entities such as the Kenya Pipeline Company (KPC) if the government sells part of its stake.
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Decisions on holding foreign currency assets will now be made in consultation with the Central Bank of Kenya, allowing the Treasury to diversify reserves beyond the US dollar.
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The new draft removes rigid allocation percentages that previously dictated how the fund’s components were distributed. Instead, the Cabinet Secretary will decide allocations annually based on prevailing economic conditions.
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Additionally, only 50 percent of the investment income from the Stabilisation Component will be reinvested, with the remaining half directed to the Future Generation Fund to boost Kenya’s long-term savings.
The Treasury emphasized that establishing the Kenya Sovereign Wealth Fund is vital for ensuring fiscal stability, reducing over-reliance on debt, and securing a sustainable financial future for generations to come.
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