President William Ruto announced that the expansion of Jomo Kenyatta International Airport (JKIA) will be the first project to receive money from the National Infrastructure Fund (NIF).
The Head of State shared this news on Monday, March 9, shortly after signing the National Infrastructure Fund (NIF) Bill into law. The government designed this fund to raise over 5 trillion shillings over the next decade to power massive development projects across the country.
“I am pleased to announce that the expansion of JKIA will be the first major project financed under this new model of financing under the NIF, and I know this looks too good to be real,” Ruto stated.
Ruto announced that the government will use 20 billion shillings from the sale of the Kenya Pipeline Company (KPC) as seed capital to expand the 68-year-old international airport.
The president urged other investors to seize this opportunity and contribute their funds to the fund, which will support the airport’s growth and other national development projects.
“We have just announced the contract for the expansion of JKIA, and we will use Ksh20 billion from the proceeds of the Kenya Pipeline IPO as the seed money for the expansion of JKIA. Pension funds, insurance companies, and other collectives should use this opportunity to invest,” he added.
Operating as a corporate body, the fund holds the power to own property, sign contracts, and invest in projects. However, its charter strictly forbids it from borrowing money or taking credit against its balance sheet.
“The fund marks a new chapter in financing our transformation, making us the architects of our future. It will close the infrastructure financing gap by raising over KSh5 trillion to fund key projects, including the production of 10,000 megawatts of clean energy, 50 mega dams, 200 micro-dams and more than 1,000 small dams, 2,500 km of dual carriageways, and 28,000 km of roads,” Ruto announced.
“Additionally, we will have the necessary financing for extending the Standard Gauge Railway from Naivasha to Malaba and Kisumu.”
The Treasury Cabinet secretary revealed that an eight-member Board of Directors will oversee the fund. An independent director will chair this board, which also includes the Treasury CS.
The leadership team will feature four independent directors and two development banking experts. To ensure the board remains impartial, strict rules bar anyone with recent government jobs or political ties from joining.
Speaking at the signing ceremony, Treasury CS John Mbadi noted that the NIF board must submit reports to his office four times a year.
“We have two levels of management for this fund. The board will be reporting to CS for Treasury four times in a year, and the CS will report to the cabinet at least twice in a year. We will also be reporting to the National Assembly at least once a year,” Mbadi stated.
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