Cabinet Approves KSh5 Trillion Infrastructure Fund and Other Major National Projects - December 2025

Kenya's Cabinet has approved the establishment of a KSh5 trillion National Infrastructure Fund and a Sovereign Wealth Fund to accelerate economic growth. These funds will utilize creative financing methods beyond traditional taxation to mobilize resources. The Cabinet also approved the implementation of new second-generation smart driving licenses, which will be rolled out via a public-private partnership to modernize transport and improve road safety. In a related development, the Kenyan Government has signed a KSh 40.4 billion Public-Private Partnership (PPP) deal. This agreement aims to upgrade the national power transmission network, boost grid stability, and integrate renewable energy.