{
  "id": 12829265,
  "title": "Infrastructure Fund begins buying government bonds",
  "url": "https://urgent.news/2026/10/08/infrastructure-fund-begins-buying-government-bonds",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-08T08:33:48.000Z",
  "source": {
    "name": "Capital Business",
    "slug": "capital-business",
    "url": "https://capitalfm.africa/infrastructure-fund-begins-buying-government-bonds/"
  },
  "original_language": "en",
  "account": "Nairobi, Kenya - The National Infrastructure Fund (NIF) in Kenya has commenced utilizing its Sh340 billion seed capital by investing in government bonds, with the intention of generating returns and attracting additional financing for infrastructure projects. The fund began its bond purchases in July, representing the initial significant use of its capital as Kenya seeks alternative sources of infrastructure funding. NIF Chief Executive James Mworia anticipates these investments to yield approximately Sh42 billion annually, which can then be used to fund further investments and assist in attracting private capital to infrastructure projects. This strategy becomes crucial as Kenya confronts the challenge of competing public spending demands alongside high debt-service costs that restrict the government's reliance on borrowing for project financing. Mworia, speaking to Reuters, highlighted Kenya's high debt service relative to income, significant social needs, and the limit to which Kenyan taxes can be increased. \"We have a high debt service level relative to our income, we have high social needs and we have a limit to which you can tax Kenyans,\" he noted. \"But on the other hand, we have an infrastructure deficit.\" The fund aims to deploy the entire Sh340 billion by June 2027, equivalent to roughly one-third of the government's domestic borrowing target for the current fiscal year. The NIF seeks to mobilize up to Sh3.6 trillion in infrastructure financing over the next decade, covering sectors such as energy, transport and logistics, ICT, water, and agriculture. This latest investment follows Mworia's September plans to expand the fund's access to capital beyond government financing. During Africa Capital Week on September 9, Mworia advocated for the creation of an NIF Infrastructure Development Fund, potentially listed on the Nairobi Securities Exchange, employing a framework akin to Development Real Estate Investment Trusts to raise funds for infrastructure. Mworia emphasized that such an instrument would provide investors with a liquid investment vehicle while addressing the disparity between long-term infrastructure assets and shorter-term investment requirements. When Mworia assumed leadership as the inaugural NIF CEO, his primary objectives included mobilizing co-investment capital and establishing a pipeline of infrastructure projects. The NIF was established with the goal of mobilizing nearly Sh5 trillion over the next decade through government allocations, private investment, privatization proceeds, grants, and loans. The fund is anticipated to support projects in highways, railways, ports, agribusiness infrastructure, and energy systems. Its capital base was partly funded by proceeds from the privatization of Kenya Pipeline Company and the sale of a portion of the government's stake in Safaricom, according to Reuters. The fund is also exploring investments in major private infrastructure projects, including the proposed Dangote refinery in Lamu, although the scale of any potential investment is undisclosed. This approach aims to leverage public capital to draw in larger pools of private financing, potentially reducing the nation's reliance on direct government borrowing for long-term infrastructure development.",
  "summary": "NAIROBI, Kenya, Oct 8 – Kenya’s National Infrastructure Fund (NIF) has started deploying its Sh340 billion seed capital, beginning with investments in government bonds as it seeks to generate returns…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}