Kenya has announced the creation of a sovereign wealth fund and an infrastructure fund aimed at financing key sectors of the economy without further increasing public debt.
"We are establishing two important funds — an infrastructure fund and a sovereign wealth fund,” said Kenyan President William Ruto.
However, the president did not specify when the two funds would become operational.
The East African nation currently faces a high debt repayment ratio, largely due to major infrastructure investments made in recent years.
A new Public Assets Privatization Law, recently passed by Parliament, is expected to help mobilize capital to feed into these new funds.
The privatization campaign will begin with the sale of shares in the Kenya Pipeline Company, which manages the transport of petroleum products within Kenya and to neighboring countries. The operation is expected to raise up to 130 billion shillings (about $1.01 billion), according to official data.
The infrastructure fund will focus primarily on strengthening agriculture — a cornerstone of Kenya’s economy — and increasing the country’s energy capacity, according to FAAPA.