For many Kenyans, the word "privatization" triggers a sense of dread, often associated with plugging budget holes or paying off mounting national debts. However, Mbadi is flipping the script.
The CS revealed that these proceeds will not be swallowed by the national budget. Instead, the funds will be injected directly into a newly envisioned National Infrastructure Fund. According to Mbadi, the strategy follows a strict 90/10 split:
90% for Private Sector Leverage: The lion’s share will be used to de-risk and attract private investment into Kenyan infrastructure. By making these projects commercially viable and sustainable, the government aims to break its "addiction" to expensive local and foreign loans for development.
10% for the Future: The remaining portion will be funneled into a Sovereign Wealth Fund, acting as a financial fortress for future generations.
Mbadi was quick to distance this windfall from the immediate pressures of the 2026/2027 Budget.
"This money is not for recurrent expenditure or debt servicing," Mbadi clarified. "It is about making our projects self-sustaining so that the country can finally quit depending on loans for development."
The 10% set aside for the Sovereign Wealth Fund is not just sitting idle. It is designed to act as a "shock absorber" for the nation, focusing on three critical areas:
Strategic Infrastructure: Long-term projects that require patient capital.
Intergenerational Wealth: Ensuring that today’s assets benefit the Kenyans of tomorrow.
Economic Stabilization: Providing a safety net for future financial crises—similar to the unprecedented shocks seen during the COVID-19 pandemic.
By moving away from "budget-plugging" and toward "wealth-building," the Treasury is betting that selling pieces of the present will buy a more stable and independent future for Kenya.
Hello, my name is Yoruba. I'm a 25 year old self-employed blogger from the Africa.
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