Kenya is set to establish a National Infrastructure Fund aimed at financing major public projects locally, a move President William Ruto says will reduce the country’s dependence on external borrowing and ensure steady completion of stalled developments.
Speaking during a church service at St. Mary’s AIPCA Church in Kathelwa, Meru County, on Sunday, President Ruto said the initiative would help bridge the funding gaps that have long stalled critical infrastructure such as roads, dams, and power generation projects.
“For long, we have been building roads which end up stalling due to lack of funds. For Kenya to grow, we must do things differently,” the President said, adding that he is already in talks with Members of Parliament to support the creation of the new fund.
According to Ruto, the National Infrastructure Fund will empower the government to complete ongoing projects, launch new initiatives, and expand power generation capacity to 10,000 megawatts. He highlighted Meru County’s infrastructure needs, noting that Sh40 billion is required for local water projects alone — equivalent to the national allocation for similar projects across the country.
“In Meru alone, we need about Sh40 billion for water projects, yet the entire country has secured only the same amount. We have done a lot to lay the foundation in the last two years, but we must up our game,” Ruto said, emphasizing that Kenya must rise beyond the limitations of “third-world politics.”
He criticized opposition parties for “fuelling negative politics and early campaigns” that distract from development, asserting that “political sloganeering like ‘Ruto must go’ or ‘one term’ adds no value.”
The President announced several major investments in Meru County as part of his government’s development agenda. Among these is the elevation of Meru to city status, which will make it Kenya’s sixth city. Ruto also confirmed a Sh7 billion allocation for the redesign and reconstruction of the Nithi Bridge, which has long been considered a road safety hazard.
“We want to straighten the Nithi Bridge so that it stops being a trap where citizens lose their lives,” he said. Additionally, Sh2 billion has been set aside for road rehabilitation across Meru County, with works expected to begin soon following delays caused by inflation and the 2022 economic slowdown.
In partnership with the World Bank, the government has allocated Sh5 billion for a 10-kilometre road and bypass network in Meru town to support its transition to city status. Further allocations include Sh800 million for 17 modern markets, Sh1 billion for upgrading the Meru Level Five Hospital, and the construction of a State Lodge, expected to be completed by December.
On housing, Ruto revealed that 2,000 affordable units have been completed in Meru, while an additional 8,000 units await land acquisition. “Sh33 billion was allocated for housing in Meru; Sh21 billion has been used, and Sh12 billion remains,” he said.
The President reiterated that education and electrification remain at the heart of his economic transformation plan. He cited the employment of 100,000 teachers and the construction of 23,000 schools as part of the government’s commitment to expanding access to education. He also noted that university and technical college fees had been reduced by 14 to 15 percent, ensuring that students from poor backgrounds pay as little as Sh10,000 per term.
Ruto further announced Sh2 billion for rural electrification in Meru County, targeting 26,000 households, underscoring the government’s vision to make Kenya’s development self-reliant, locally financed, and inclusive.
The creation of the National Infrastructure Fund marks a significant step in Kenya’s fiscal reform strategy, aligning with ongoing efforts to reduce debt exposure, enhance domestic capital mobilization, and strengthen public-private partnerships for sustainable growth.
