Controller of Budget flags loopholes in Ksh.5 trillion National Infrastructure Fund

Several experts including the Controller of the Budget (CoB) and the Auditor General have has raised concerns over the establishment of the Ksh.5 trillion National Infrastructure Fund.

In a statement submitted to the National Assembly Finance Committee during stakeholder engagement on the National Infrastructure Fund Bill 2026, CoB Margaret Nyakang'o's office says the Fund has been established as a corporate entity and not a public fund, this making it prone to abuse.

She questioned the legality of excluding her office from authorization of withdrawal and expenditure of the proceeds.

Other financial institutions have also questioned the governance and institutionalization of the Fund, insisting that it should be managed by an independent entity and not National Treasury.

The CoB says the bill is ambiguous and does not address the applicability of the PFMA Act to the Fund, how it will be oversighted by the office CoB and who authorizes withdrawals and expenditure.

In addition, Nyakang'o says the National Infrastructure Fund Bill 2026 does not explicitly provide for the exclusion of money from the consolidated fund, therefore, the proceeds must first be deposited into the consolidated fund before being transferred to the infrastructure fund; a concern also raised by the Institute of Public Finance.

“For example, if we are to sell KICC, how do we ensure that the money goes to National Infrastructure Fund and not Consolidated Fund?” Posed the institute.

In its submission to the National Assembly Finance Committee, the Institute of Certified Public Accountants of Kenya (ICPAK) stated that the Ksh.5 trillion National Infrastructure Fund should be managed by an independent entity in order to enhance credibility and transparency.

ICPAK council member Hesbpn Omollo stated: “We want oversight and credibility...which must be enhanced through funds management by an independent body.”

In calling for the amendment of the Bill, the Office of the Controller of Budget, the Institute of Public Finance and ICPAK recommended that the bill provides authorization of withdrawals by the CoB; intergrates the fund fully into the budget cycle; quarterly and annual reporting of the fund's performance to the CoB; and clarify the governance and regulatory framework applicable to the fund.

The National Infrastructure Fund Bill 2026 has undergone its first reading in Parliament even as it returns to the House for the second reading next week ahead of public participation.