President William Ruto announced the establishment of a new National Infrastructure Fund to revolutionize how Kenya finances its development projects, moving away from reliance on heavy borrowing and increased taxes. This fund, along with a Sovereign Wealth Fund, aims to attract diverse investments and protect the nation's long-term economic interests.

• Proceeds from state asset privatization will be directed to the National Infrastructure Fund to attract investment from pension funds, sovereign partners, private equity firms, and development finance institutions.
• President Ruto emphasized that this new financing model will enable the government to build critical infrastructure without raising taxes or accumulating unsustainable foreign debt.
• The Sovereign Wealth Fund focuses on savings, stabilization against global shocks, and infrastructure investment, with a draft Sh200 billion Sovereign Wealth Fund Bill outlining its management.

Kenya's textile industry is poised for a significant revival after decades of decline, with a new policy aiming to re-establish it as a major economic pillar. Once a robust sector, it suffered from underinvestment and uncontrolled imports, but now presents a massive opportunity for import substitution and export growth.

• The new Kenya Cotton, Textile, and Apparel (CTA) Policy 2024 sets a roadmap for revitalization, targeting USD 2 billion in exports by 2030, up from USD 628 million in 2024.
• The initiative aims to create 22,000 new jobs, generate USD 514 million in annual output, and attract USD 470 million in investment.
• Currently, Kenya imports approximately USD 2.2 billion worth of textiles annually, with local mills meeting less than 45% of domestic fabric demand, indicating a substantial opportunity for local production.

Kenya's President William Ruto is scheduled to address Parliament on Thursday regarding the State of the Nation, facing significant pressure over the country's economic performance, debt, and his bottom-up transformation agenda.

• Kenya's public debt remains a major concern, with nearly one-third of all tax revenue going towards interest payments, indicating a high risk of debt distress according to the World Bank.
• The World Bank cut Kenya's 2025 GDP growth forecast to 4.5 percent, citing high domestic debt and weak private-sector credit.
• Despite economic challenges, the administration has achieved some macro stability, with inflation easing and the Kenyan shilling stabilizing, alongside strengthened foreign exchange reserves.