The Cabinet’s approval of a Sh5 trillion National Infrastructure Fund (NIF) on December 15, 2025, has renewed public debate on the range, function, and accountability of funds managed by the national government under the Constitution and various Acts of Parliament.
Kenya’s public finance architecture is defined in Chapter 12 of the Constitution of Kenya (2010) and implemented through the Public Finance Management (PFM) Act. The legal framework empowers the Executive, under parliamentary oversight, to establish and manage funds for governance, development, social protection, and economic empowerment.
The establishment of the National Infrastructure Fund and the Sovereign Wealth Fund joins key national government funds as the country enters a new phase of development towards a first-world economy.
Constitutional and regulated funds include the Consolidated Fund, the Equalisation Fund, the Contingencies Fund, the Judiciary Fund, and the NG-CDF.
These are public funds established and regulated by the Kenyan constitution or by specific acts of parliament. Their purposes, sources of revenue, administration and oversight of the funds are dictated by the legal framework.
The Consolidated Fund is the government’s main account, where all national revenue is deposited. Withdrawals from this fund are regulated and can only occur through an Appropriation Act passed by Parliament, except for key services such as public debt repayments, pensions, and the salaries of constitutional officeholders.
It was established under Article 206 of the 2010 Constitution and finances both recurrent and development expenditure, as well as Consolidated Fund Services (CFS), including public debt repayment, pensions, and salaries of constitutional officeholders.
For emergencies, the government relies on the Contingencies Fund, created under Article 208. It is a permanent reserve that allows spending before parliament's approval, provided the cabinet secretary seeks parliament's approval.
Another fund established in the 2010 constitution is the Equalisation Fund. Its main purpose is to finance basic services, including water, roads, health facilities, and electricity, in marginalised areas, to bring them into balance with the rest of the country. Established by Article 204 of the Constitution, it receives 0.5 per cent of all national government revenue annually, based on the most recent audited accounts approved by Parliament.
The Judiciary Fund is also provided for under Article 173 of the 2010 Constitution, which guarantees the financial independence of the Judiciary.
Its approved budget is charged directly on the Consolidated Fund, protecting the Judiciary from executive interference.
Other constitution-regulated funds, such as the National Government Constituencies Development Fund (NG-CDF) and the National Peace Support Operations Fund, are established by Acts of Parliament. These funds are governed by their specific laws and PFM regulations rather than the Constitution.
The government also operates several social and enterprise funds, including the Youth Enterprise Development Fund, Women Enterprise Fund, Uwezo Fund, HELB, NSSF, and SHIF. By