Treasury Cabinet Secretary John Mbadi has officially appointed six members to the Board of the National Infrastructure Fund (NIF). This move now clears the way for the full operationalisation of the State-backed infrastructure financing vehicle that is expected to play a big role in the country's development agenda.
In a gazette notice published on Wednesday, July 8, the appointments took effect immediately. The newly appointed board members are James Mworia Mwirigi, Fahima Ali Ahmed Zein, Christopher Kibui Maranga, Latoya Ouna, Lawrence Kibet and Mohammed Abdirahman Hassan.
Among the appointees is James Mworia Mwirigi, who is a well-known Kenyan lawyer, accountant and business executive currently serving as the Managing Director and CEO of Centum Investment Company.
Lawrence Kibet, on the other hand, is the Director General of Public Investments and Portfolio Management at the National Treasury. The board will be responsible for providing oversight and investment policy direction for the fund.
The National Infrastructure Fund has already been seeded with Ksh103.45 billion from the sale of a 65% stake in Kenya Pipeline Company (KPC). This money was officially received by the government and deposited at the Central Bank of Kenya under the NIF account.
The KPC IPO was Kenya's first fully electronic public offering and attracted more than 70,000 Kenyan retail investors, marking a significant step in broadening citizen ownership of national enterprises.
The fund is expected to finance major projects across the country, including part of the Ksh155 billion JKIA modernisation programme. The airport upgrade is among the projects being considered under the NIF, following a 20-year master plan running through 2045.
The government has also confirmed that the fund will be used to build several mega and medium-sized dams across the country.
Additionally, the fund will hold the more than Ksh200 billion the State expects to receive from the sale of its Safaricom shares to Vodacom.
Treasury CS Mbadi has said the government expects to receive Sh204.3 billion from the sale of an additional 20 per cent stake in Safaricom. The proceeds will be deposited into the National Infrastructure Fund, just like the Sh103 billion raised from the KPC IPO.
The National Infrastructure Fund is designed to mobilise long-term financing for development while reducing reliance on borrowing and taxation.
The government intends to raise up to Sh5 trillion through a mix of domestic savings, capital markets, private sector investment and strategic monetisation of mature state assets. As CS Mbadi put it, "We are trying to finance 21st century infrastructure using 21st century financing models".
0 Comments