Kenya's Parliament has passed legislation creating a Sh 5 trillion National Infrastructure Fund that will operate beyond the reach of the Auditor General, raising alarm among governance watchdogs in a country already reeling from revelations of massive public fund embezzlement.
The National Infrastructure Fund Bill 2026, passed during heavy rains that kept many citizens indoors, establishes the fund as a private company rather than a public entity. This structural choice means the Auditor General - the independent office responsible for scrutinizing government expenditure - will have no authority to examine the fund's books.
"This is worse than the Finance Bill 2024," wrote Kimani Ichungwa, the bill's sponsor, inadvertently highlighting concerns that the legislation deliberately circumvents accountability mechanisms. The fund will handle public money and taxpayer-backed borrowing, yet operate with the opacity of a privately-held corporation.
Dr. Wanjiru Gikonyo, a governance researcher at the University of Nairobi, called the structure "a troubling regression" for Kenya's democratic institutions. "The Auditor General has been unearthing embezzlement of billions daily. Now we're creating a massive pool of public funds that this office cannot touch."
The timing is particularly fraught. Kenya has seen a cascade of corruption scandals in recent months, with public officials accused of misappropriating development funds. Civil society organizations argue that moments like these call for more oversight, not less.
"We didn't fight for multi-party democracy just to watch our taxes disappear into unaccountable private companies," said Faith Mwangi, director of the Nairobi-based Transparency Initiative. "This bill treats Sh 5 trillion - money that could transform our infrastructure, our schools, our hospitals - as if it were a private businessman's checking account."
The legislation allows the fund to borrow against future tax revenues, with Kenyan citizens ultimately responsible for repaying debts incurred by an entity they cannot audit. Critics have drawn comparisons to failed infrastructure schemes across the continent where lack of oversight enabled spectacular looting.
Supporters of the bill argue that private-sector efficiency will accelerate infrastructure development. But Dr. Gikonyo counters that efficiency and accountability are not mutually exclusive. "South Africa's Development Bank operates effectively while remaining fully transparent. Rwanda's infrastructure successes came through rigorous oversight, not by hiding from auditors."
The bill now awaits presidential assent. Once signed, it will establish a fund larger than Kenya's annual national budget - operating in a deliberately constructed blind spot of public accountability.
54 countries, 2,000 languages, 1.4 billion people. In Kenya, citizens are asking: whose infrastructure fund is this, really?
