Kenya’s President William Ruto has signed the Sovereign Wealth Fund Bill, 2026, into law, creating a national investment vehicle to preserve wealth generated from Kenya’s petroleum, mineral and strategic asset revenues for future generations.
The signing ceremony was held July 8 at State House in Nairobi and was attended by National Assembly Speaker Moses Wetang’ula, Treasury Cabinet Secretary John Mbadi, Deputy President Kithure Kindiki and private-sector executives.
The law establishes three components: the Stabilization Fund, the Strategic Infrastructure Investment Fund and the Future Generations Fund (Urithi Fund)
| Pillar | Purpose | Key Features |
| Stabilisation Fund | Cushion the economy against external shocks and commodity price volatility. | Capped at KSh 10 billion ($77.4 million), adjustable by Treasury CS; restricted to foreign, liquid, investment-grade assets. |
| Strategic Infrastructure Investment Fund | Finance priority national projects (transport, energy, housing, health). | Withdrawals tied to Stabilization Fund performance; supports long-term development and job creation. |
| Future Generations Fund (Urithi Fund) | Ring-fence savings for future generations. | At least 30% of petroleum and mineral revenues must be deposited here; insulated from debt servicing; invested only in secure foreign assets. |
“Today, we enshrine in law the institution that will ensure that the prosperity those assets create endures for generations,” Ruto said.
Modeled on Norway and Botswana
Ruto said the fund drew inspiration from sovereign wealth funds in Norway and Botswana.
He cited Norway’s Government Pension Fund, valued at about $2.2 trillion, as an example of what disciplined resource revenue management can achieve over time.
“Natural resources create opportunity. Institutions determine destiny,” he said.
The president said Kenya’s first comprehensive nationwide mineral survey confirmed significant deposits of strategic and industrial minerals across the country.
He said the fund is intended to convert those resources into long-term national savings rather than immediate consumption.
The Sovereign Wealth Fund is the second major financial institution created under the government’s economic transformation agenda this year, following the National Infrastructure Fund established in March 2026 to mobilize private capital for infrastructure development.
Ruto pointed to Kenya’s broader macroeconomic recovery as context for the new law, saying foreign exchange reserves have increased from $5.7 billion in 2022 to about $17 billion, equivalent to seven months of import cover, up from 2½ months.
Kindiki described the law as one of Kenya’s most significant economic reforms, saying it would help shield the country from external shocks, including disruptions stemming from the recent conflict in the Middle East.
The law provides for independent professional management of the fund, parliamentary oversight, regular public reporting and auditing.
“Every shilling must be accounted for,” Ruto said.
The fund will be overseen by a board whose chairperson will be appointed by the president.
Not everyone has welcomed the initiative without reservation. Former Roots Party presidential running mate Justina Wamae has questioned the timing, arguing Kenya should prioritize food sovereignty and address its budget deficit before establishing a sovereign wealth fund, noting that nearly half of ordinary government revenue currently goes toward debt repayment and pensions.
