President Ruto signs Sovereign Wealth Fund Bill 2026 as Kenya sets aside 30% of mineral revenues for future generations

Kenya Establishes Sovereign Wealth Fund After President Signs 2026 Bill Into Law

Kenya has officially established a Sovereign Wealth Fund after the Sovereign Wealth Fund Bill, 2026 was signed into law, creating a framework to manage resource revenues, finance strategic investments, and preserve national wealth for future generations.

The new law establishes Kenya’s Sovereign Wealth Fund, which will be structured into three separate components: the Stabilisation Fund, the Strategic Infrastructure Investment Fund, and the Future Generations Fund.

The legislation seeks to strengthen Kenya’s fiscal resilience by creating a mechanism to cushion the government against economic shocks, support long-term infrastructure development, and ensure that proceeds from natural resources benefit both current and future generations.

Kenya’s Three Sovereign Wealth Fund Components

The Stabilisation Fund will serve as a financial buffer for the national government during periods of economic disruption or extraordinary shocks that threaten macroeconomic stability.

The fund is designed to provide resources during crises such as global commodity price disruptions, pandemics, or geopolitical events that affect government revenues and economic performance.

The Strategic Infrastructure Investment Fund will focus on financing priority infrastructure projects aligned with Kenya’s national development plans.

The fund will also be used to leverage private sector financing for strategic investments in areas considered critical for economic growth, including projects that enhance productivity, connectivity, and national competitiveness.

The third component, the Future Generations Fund, will establish a savings mechanism aimed at ensuring that Kenya’s natural resource wealth is preserved beyond the current generation.

The fund will support intergenerational wealth distribution by creating an endowment that can provide future income streams, particularly after mineral and petroleum resources decline.

30% of Mineral and Petroleum Revenue Reserved for Future Generations Fund

A key provision of the Sovereign Wealth Fund Bill 2026 is the allocation of 30 percent of total mineral and petroleum revenues to the Future Generations Fund. The ring-fencing of resource revenues is intended to prevent the depletion of natural wealth without creating long-term benefits for Kenyans.

The provision aligns with Article 201(c) of the Constitution, which requires public finance management to ensure that the benefits and burdens of public resources are shared equitably between present and future generations.

The Future Generations Fund is expected to provide Kenya with an alternative source of income when revenues from extractive industries decline due to resource depletion.

Sovereign Wealth Fund Bill 2026 Legislative Journey

The Sovereign Wealth Fund Bill, 2026 (National Assembly Bills No. 7 of 2026) was sponsored by Hon. Kimani Ichung’wah, EGH, MP, Leader of Majority Party. The Bill was published on February 25, 2026, through Kenya Gazette Supplement No. 25 and received its First Reading in the National Assembly on March 11, 2026.

It proceeded to the Second Reading stage on June 24 and June 25, 2026, before being considered by the Committee of the Whole House. The National Assembly passed the Bill with amendments on July 2, 2026, paving the way for its enactment into law.

Kenya Sovereign Wealth Fund Investment Restrictions

The Sovereign Wealth Fund Act introduces strict investment rules aimed at protecting public resources and ensuring prudent management of the funds. The law prohibits investments in:

• Speculative derivatives
• Unlisted investments
• Real estate located in Kenya
• Private equity
• Art
• Commodities
• Securities issued by a Kenyan issuer

The restrictions are intended to reduce exposure to high-risk investments and ensure that the Sovereign Wealth Fund focuses on long-term wealth preservation and sustainable returns.

The Act also introduces risk management principles, investment guidelines, and provisions for appointing professional investment fund managers to oversee the growth of the assets.

National Assembly Given Oversight Role over Sovereign Wealth Fund

The new law strengthens parliamentary oversight by requiring the National Assembly to approve investment policies developed by the Sovereign Wealth Fund Board.

The additional oversight mechanism is aimed at ensuring that investment decisions align with Kenya’s national development priorities and that funded projects deliver value to the economy.

The framework also seeks to enhance accountability and transparency in the management of public wealth.