President William Ruto has signed the Sovereign Wealth Fund Bill, 2026 into law, paving the way for the establishment of Kenya’s first Sovereign Wealth Fund aimed at strengthening economic stability, financing strategic investments and safeguarding wealth for future generations.
Ruto assented to the legislation on Wednesday, July 8, during a ceremony held at State House, Nairobi, marking a significant milestone in the country’s public finance management framework.
Speaking during the signing ceremony, National Assembly Clerk Samuel Njoroge said the new law establishes both the legal and institutional framework for the creation and management of the Sovereign Wealth Fund.
Ruto Signs Sovereign Wealth Fund Law. Photo: Courtesy.
According to Njoroge, the legislation provides for a professionally managed fund overseen by qualified experts to ensure transparency, accountability and efficient management of national resources.
He explained that the Sovereign Wealth Fund will comprise three distinct components: the Stabilization Fund, the Strategic and Infrastructure Investment Fund, and the Future Generations Fund, each serving a different purpose.
The Stabilization Fund is designed to help the government respond to economic disruptions by providing financial support during periods of macroeconomic instability, including pandemics, global economic downturns and natural disasters.
Njoroge said the fund will enable the government to cushion Kenyans from the effects of unforeseen economic shocks without significantly disrupting public finances.
Meanwhile, the Strategic and Infrastructure Investment Fund will focus on mobilising resources alongside the private sector to finance major infrastructure projects considered critical to the country’s economic growth and development.
The law also establishes the Future Generations Fund, which is intended to preserve a portion of the country’s wealth for the benefit of future generations.
Njoroge noted that 30 per cent of the fund’s resources will be allocated to the Future Generations Fund, adding that it enjoys the strongest legal protections under the new law.
He explained that the money set aside under this component cannot be borrowed against, ensuring the funds remain intact and available for future generations.
The legislation further provides that the Sovereign Wealth Fund will be managed by a board of directors, with the chairperson appointed by the President, while professionals with the necessary expertise will oversee the day-to-day management of the fund.
The enactment of the law marks a key step in Kenya’s efforts to build long-term national savings, strengthen fiscal resilience and create a sustainable investment vehicle capable of supporting economic development while preserving wealth for generations to come.
