The National Treasury has defended the proposed National Infrastructure Fund (NIF), clarifying it is a government-owned company and not a constitutional public fund, amidst a High Court challenge alleging its unconstitutional formation.

• The NIF aims to mobilize over Sh5 trillion from public and private sources for large-scale infrastructure projects.
• Treasury Cabinet Secretary John Mbadi stated the entity was approved by Cabinet in December 2025 and is designed as a limited liability company under the Government Owned Enterprises Act.
• The Treasury asserts that no public funds have been appropriated or expended yet, and the process is still within the Executive arm of government, subject to further reviews and parliamentary approvals where required.

The High Court in Kenya has rejected an application to suspend a previous judgment that nullified the creation of presidential advisory offices, marking a significant setback for efforts to maintain these positions. Justice Bahati Mwamuye ruled the request was res judicata, as the same arguments had been previously dismissed.

• The High Court dismissed the application on Monday, February 3.
• The case challenged the Executive's decision to create Advisors to the President roles without proper oversight from bodies like the Public Service Commission (PSC) and the Salaries and Remuneration Commission (SRC).
• The original judgment on January 22, 2026, declared the advisory offices unconstitutional.

Treasury Cabinet Secretary John Mbadi has defended the government’s plan to borrow Sh1 trillion from local banks to finance the 2026/2027 budget, assuring the private sector that local lenders have sufficient capacity without crowding out businesses.

• The government faces a budget deficit of Sh1.1 trillion due to reduced revenue and rising expenditure.
• Mbadi dismissed concerns that banks would prioritize government lending, stating Kenya has a robust financial sector.
• Domestic borrowing aims to reduce reliance on external loans, which are subject to fluctuating interest rates and US dollar strength.