Kenya’s Finance Minister Defends Infrastructure Fund Amid Misleading Claims
Kenya’s Finance Minister, John Mbadi, has vigorously defended the newly enacted National Infrastructure Fund Act, which aims to finance major projects without incurring additional debt or raising taxes. However, his arguments have come under scrutiny for containing misleading claims about the country’s debt, education spending, and energy needs.
The Act, signed into law by President William Ruto on March 9, 2026, introduces a novel financing model to upgrade infrastructure, starting with the expansion of Kenya’s main airport. While the government touts the fund as a solution to fiscal constraints, critics argue it could become a breeding ground for corruption. The Katiba Institute has already challenged the law in court, adding fuel to the controversy.
Mbadi justified the fund by citing Kenya’s shrinking fiscal space, mounting debt pressures, and the political fallout from potential tax hikes. He emphasized the law’s ability to fund critical projects, including upgraded ports, expanded power grids, new highways, and irrigation systems. However, his claims about Kenya’s economic landscape have raised eyebrows.
Debt Claims: Partially Accurate
Mbadi stated that Kenya’s public debt stands at approximately 67% of GDP, a figure supported by official data. The debt-to-GDP ratio, a key indicator of economic health, has slightly decreased from 68.1% in 2021 to 67.5% in December 2025. This suggests some progress in managing the country’s debt burden.
However, he was less precise when discussing debt servicing. Mbadi claimed that debt repayments would consume 48.7% of ordinary revenue in the 2026/27 financial year. Official projections, however, paint a grimmer picture, estimating the ratio at 53%—far higher than his assertion. Moreover, Kenya has been servicing over 50% of its revenue since 2022/23, a trend projected to continue for the next three years. This discrepancy undermines his portrayal of the debt situation as manageable.
Education Spending: Misleading Figures
Mbadi also asserted that Kenya spends 27% of its total expenditure on education, defending the government against criticism of underfunding the sector. This claim, however, is misleading. While education does account for 27% of the budget allocated to ministries and departments, it represents only 16.4% of the entire national budget once debt repayments and other consolidated fund expenses are factored in.
By excluding nearly half of the budget from his calculations, Mbadi overstated the government’s investment in education. This partial presentation risks creating an inaccurate perception of the sector’s funding priorities.
Energy Needs: Ambitions vs. Reality
On the energy front, Mbadi correctly stated that Kenya’s current power generation capacity exceeds 3,000 megawatts (MW). However, his assertion that Kenya “needs” an additional 10,000 MW to support industrialization blurs the line between long-term ambitions and immediate demand.
Official plans, including the Energy Ministry’s 2025-2030 strategy, target nearly doubling renewable capacity to 5,952 MW by 2030—a more modest goal. The 10,000 MW figure, first proposed in former President Uhuru Kenyatta’s 2013 manifesto, remains aspirational and not reflective of current energy needs.
A Fund Under Scrutiny
While the National Infrastructure Fund Act promises to address Kenya’s infrastructure deficit, concerns about transparency and corruption loom large. Critics argue that without robust oversight, the fund could become a political slush fund, diverting resources from their intended purpose.
Mbadi’s defense, though passionate, has been marred by inconsistencies and selective presentation of data. As Kenya embarks on this ambitious infrastructure drive, accurate information and accountability will be crucial to ensuring the fund delivers on its promises.
— Reported by Nexio News
