Government to Launch Infrastructure Fund and Proposes New Sh5 Fuel Levy - December 2025

The Kenyan government is contemplating a new Kshs 5 per litre fuel levy to generate an estimated Kshs 125 billion for stalled road projects across the country. In a related development, President William Ruto affirmed that a new Infrastructure Fund will be launched this week, despite opposition concerns. The opposition has raised concerns that the fund will be financed through the sale of the government's shares in Safaricom. Treasury Cabinet Secretary John Mbadi has explained the government's strategy for selling these shares. Separately, the High Court has suspended a contentious Ksh.2.1 billion road agreement between Nakuru County and the National Youth Service, halting the deal for now.